COSCO Sustainable Development Report 2005

Before 1998, subsidiaries of COSCO have been adopting monthly salary system for company leaders. After 1998, the group has carried out reform and established incentive and restriction mechanism adaptive to the market economy mechanism. Second-tier subsidiaries of the group started to implement annual salary system for leaders and salary localization system for employees stationed outside the companies. The systems have been 100% realized in all second-tier subsidiaries in 2005. This implementation has maintained basic interest, stably increased income and improved identity conception of enterprise for employees, and therefore strengthened the cohesion power for the enterprise.¡£

Paid vacation system

COSCO Group offers industry-competitive paid vacation and sanitarium system. A newly married employee can enjoy 3-day holiday, and an employee who marries at a mature age will enjoy 10-day holiday. An employee will have 3-day holiday to arrange the funeral if his or her parent, mate or child passes away. An employee whose mate lives in a different place will enjoy 30-day family visiting holiday each year. An employee whose parents live in a different place will enjoy 20-day family visiting holiday each year (married employee will enjoy 20-day holiday per 4 years). In addition to public festivals and holiday, the group offers different types of paid vacation for those employees who have continuously worked for over one year. An employee who has worked less than 5 years will enjoy 5 days of paid vacation; an employee who has worked for 5-10 years will enjoy 10 days of paid vacation; an employee who has worked for over 10 years will enjoy 15 days of paid vacation; and an employee who has worked for over 15 years will enjoy 20 days of paid vacation.

Establishing essential social insurance system and enterprise supplement insurance system

In strict appliance with the requirements of the nation's related laws and codes, COSCO Group has established social insurance system for employees, covering pension, medical care, industrial injury insurance, birth insurance, unemployment insurance, and housing accumulation fund. In the light of related documents of the nation, COSCO has joined the social insurance in Beijing to ensure employees' legal rights and interests. Currently a total of 235 units of the group have participated the insurance, with the insurance ratio 200%. According to the standard and requirement in Beijing, the group has established complementary medical care, and added accidental insurance of industrial injury, and has been in active preparation for enterprise annuity.

COSCO Group has carried out and implemented related policies and regulations of the State as well as international conventions carefully. Besides, it had compiled regulations on management of crews based on policies and regulations of the State and international conventions. It formulated the overall planning on development of crew team of COSCO Group, and supervised the implementation of crew management rules and strategies of all subsidiaries. It has attached special attention to education of crews and tried its best to improve the comprehensive quality of crews. It has enhanced the construction of crew team and promoted the scientific and standardized development of crew management work.

While working on vessels, letters of crews can be delivery through agents at each port. Special offices for receiving and sending of letters were set up in all subsidiaries to ensure the mailing of letters of crews. When vessels were sailing, crews can contact with their family members through communication equipment on the vessels. When staying at ports, they can contact with family members with IP phone. All subsidiaries of COSCO Group has special officers of receiving and sending of letters to know the latest situations of vessels and ensure the mailing between vessels and families of crews through domestic and international post officers as well as agencies at port.

COSCO Group has abided by related laws and regulations of the State as well as related provinces of International Labor Organization, and has signed labor contracts will all crews employed by it to ensure salaries, casualty insurance, labor protection and leisure time of crews.