Employees sign labor contracts with enterprises on a voluntary basis. On behalf of employees, labor unions sign the collective contract with enterprises on such matters as work time, intensity, break and welfare in a bid to protect the legal rights and interests of employees.

COSCO Group allows employees to select jobs freely. When an employee is leaving, companies of the group won't restrict his or her choice for new job with any excuse or in any way, such as the detainment of certificates or archives. COSCO won't limit employees' liberty in any way, and forcible labor is strictly prohibited through such ways as detaining certificates and money, debt repayment, surveillance or threatening. So far, no complaints, appeal, letters and visits related to forcible labor and coercive labor had ever happened to COSCO.

Supervision and examination of labor protection. COSCO's all companies actively deploy the supervision and examination of labor protection by labor unions, with a batch of excellent units, ships and groups selected and praised every year. In order to deeply implement the Safe Production Law, Labor Law and Labor Union Law as well as the òthree regulationsó for supervision and examination of labor protection by labor unions, strengthen the public supervision over the enterprise's safe production and labor protection for employees, promote the enterprise's safe production and ensure the employees' safety and health during the production, COSCO's labor union established an inspection team and conducted the supervision and examination on COSCO Shipyard in Zhoushan and Nantong, Nantong COSCO KHI Ship Engineering, Shanghai COSCO Chemical Logistics, CHIMBUSCO and COSCO's ships in ports (including MV COSCO Dalian, MV Taihehai and MV Fengshunshan) from Aug. 16 to Aug. 22, 2006. The inspection team put the examination emphases on whether related companies implement national laws, regulations and policies on labor safety and sanitation, dangerous factors on production sites including dusts, harmful materials, hidden troubles of fire disasters, placement, utilization and storage of dangerous goods and the safeguard facilities. While confirming the achievements of the inspected companies and ships in safe production and labor protection for employees, the inspection team also provided ideas and suggestions on the problems and hidden safety troubles found during the inspection, which generated good effects.