COSCO Sustainable Development Report 2005

The implementation of open official business is COSCO Group’s important measure to rely on employees to run enterprise and push democratic management. It is a new approach for employees to participate in democratic decision-making and democratic management, and effective supervision for enterprise leaders.

COSCO Group advocates the enterprise culture of “All men are equal before the law”, having no discriminative policies in gender, age, disease, race, religion, etc.

COSCO Group strictly follows national and international conventions and laws about the child labor, and has established related stipulations on the prohibition from employment of child labors and under-age labors.

COSCO Group strictly follows national and international conventions and laws, and signs labor contract with employees, and signs collective contract with the labor union. The group has established Employee Brochure and gives full respect for employees’ right in employment and job selection. No forcible labor and coercive labor have been in existence.

(6) Discipline abiding work

Relaxed and Healthy Working Environment

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. Even though an employee who has violated the disciplines won’t be punished by confinement, or closing down working place and dormitory. The group has established harmonious superior-subordinate relationship and pleasant communication way. It has set up President Mailbox and second-tier subsidiaries have established General Manager Mailbox. Employees have enough rights to speak and enjoy honorable working environment. The group has set Every Friday as the leisure working day, allowing employees to wear slack suit without affecting the business operation.

Properly disposing employees’ complaints

The group encourages employees to tell senior executives about the troubles that they have met in the work and make complaints. COSCO has established related procedures on complaint letters and visits according to the Regulations on Letters and Visits. Through letters and calls organizations, employees can reflect their advice, suggestions and complaints. Based on the features of letters and visits, the group has established responsibility system to settle the letters and visits, set up regular meeting system for letters and visits, enhanced propaganda and education for laws, regulations and related policies, perfected reception and handling procedures for letters and visits, improved the business operation quality and capability of executives responsible for the letters and visits handling, established urgency coordination workgroup to provide assistance and consolation to properly solve employees’ difficulties and problems.

All shipping companies of COSCO Group own 4,527 security guards, including 91 for companies and 4,436 for ships. All these security guards have received training and obtained the Certificate of Company Security Guard, Certificate of Security Guard for International Ships or Certification of Security Guard Training.

By the end of 2005, all shipping companies of COSCO Group have had 467 ships, all of which have passed the external certification before the ISPS took effect in July 2004. All these ships at the same time have got the International Ship Security Certificate.

Since the implementation of ISPS, which went into effect in July 2004, all shipping companies of COSCO Group had been running well for the implementation of ISPS by the end of 2005. During the course, the ships had received PSC comprehensive examination (including ISPS examination) for 1,183 times/ship. The examination included 126 times/ship of special ISPS examination, all of which had passed successfully. The qualification ratio reached over 97%, and no detainment for unqualified items had taken place.