Employees are the foundation for a company to last. We regard human resources as the No.1resource, uphold the people-first concept, and make one of the three major visions of Baosteel as to “become an exemplary company where employees develop together with the Corporation”. With the objectives of maximizing corporate values and promoting the all-round development of employees, we have integrated employee development into the corporate strategic development plan, continued to push forward personal development and corporate development in a balanced way, actively explored effective means of human resources development management, coordinated the development of three types of talents (talents for operation and management, technical talents, and talents with operating skills), and created a favorable environment where talents can stand out and achieve their best performance.

Baosteel actively encourages the atmosphere for learning in the Group and among its teams, commit itself to the construction of an employee development and training system that is of multiple levels, various categories, and project-based, and provides a broad platform for the learning, training and development of employees through the seminars for decision makers, the Daily Progress Future Entrepreneur Training camp, the Golden Apple Program, the Green Apple Program, the safety experience training program, and the fresh graduate training program. Through continuous operation, optimization and improvement, we have shaped a management system that is responsible for overall planning with clear labor division and an operation mechanism that is well regulated and organized and efficient, and chosen, developed and applied an integrated incentive and regulating mechanism. Meanwhile, Baosteel attaches great importance to the construction of the training system, secures investment in training, continues to strengthen relevant infrastructure and resources such as the network of training bases (represented by Baosteel Talent Development Institute and Baosteel (Changshu) Leadership Development Center), trainers and training materials, and has preliminarily set up an e-learning system covering all the subsidiaries at home and abroad. In 2011, Baosteel earmarked a total of RMB136 million for employee training.

Applying advanced information technologies, Baosteel and its subsidiaries have been able to identify the training needs of each employee, and carried out the training plans based on the Internet. According to the corporate development strategy, the capabilities required for each post and the employees’ career development needs, in combination with the annual employee performance appraisal, Baosteel and its subsidiaries have formulated training plans of different levels and different categories every year, to ensure that employees have access to pertinent training at different phases of their career development. Baosteel attaches extreme importance to the relevance and effect of trainings, and continues to scale up training programs, and improve their quality and effect. By combining self-training with training lectures, training on job-related skills and training on specialized knowledge, we have vigorously carried out training programs in various forms, including on-job training, off-job training, training at home and abroad, theoretical and practical training, striving to meet the multi-level training needs of employees and improve their work skills and performance. Baosteel Talent Development Institute and the training institutions of relevant subsidiaries of Baosteel have been committed to innovative training, and continued to optimize the training content and improve the ways of training, so as to achieve better effects. Meanwhile, we have also strengthened cooperation and exchange with prestigious universities at home and abroad, research institutions and international enterprises in employee training, invited well-known scholars and experts from home and abroad to have face-to-face communication with our employees, and actively explored more training channels for employees.

Complete Employee Development Systems

In 2011, Baosteel conducted satisfaction survey for employee development. Employees wererandomly selected to participate in the survey and Baosteel Talent Development Institute served as anindependent third-party evaluator. In 2011, the employee development satisfaction scored 76.32 points, within the employee development satisfaction zone (70 to 90 points).

Green Apple Program

We continued the “Green Apple” Program targeting at young high-potential talents. In 2011, we designed and formulated the Green Apple Study Manual; set up the system of study compact and letter of commitment; created the study map; optimized the study plan, action plan and overseas seminar/job training plans; adopted the credit accumulation system; launched the third centralized training of the second session of the Green Apple Program; planned and selected candidates for the seminar in Taiwan; and held the seminar opening ceremony and the first training of the third session of the Green Apple Program. up to now Baosteel has developed a team of 208 Green Apple taleuts from 3 sessions in all.

Golden Apple Program

In 2011, the Golden Apple team organized, planned and participated in several academic conferences at home and abroad, and communicated with many academic institutions and groups. Baosteel set up a platform for the internal communication of the Golden Apple team, the Golden Apple seminar, and the Golden Apple meeting rooms. Meanwhile, we were also concerned about the harmony and happiness of the employees’ family life, and organized activities such as the Journey of Intimacy: Golden Apple Happy Family Weekend Camp. Through the concerted efforts of the Golden Apple team and the cooperation from corporate departments, the Golden Apple Program has made 40 achievements and generated economic benefits of RMB981 million. Among them, the technologies for energy conservation, environmental protection and green manufacturing will bring tremendous social benefits to the Corporation.

Daily Progress Training Camp

To better guide and promote these transformations and foster the captain leaders Baosteel yearns for, in the early 2011, we reviewed the performance of talents we had and those with potentials, carefully selected 18 high-level reserve talents and three young talents with high potential, and organized the Baosteel Daily Progress Future Entrepreneur Training Camp, which set off in July 2011. The trainees will receive three years of training in a brand new mode. With group study once a quarter and various forms of self-study in between, we try to inspire the trainees, broaden their vision and achieve the desired effect by means of learning from practice, mentality cultivation, exchange with senior management, meetings with entrepreneurs and lectures given by experts.

We have launched two group study sessions according to the plan, and multiple selfstudy sessions with rich content and practical value. During these sessions, trainees attended lectures given by economist Zhang Weiying and philosopher Wang Bo, held talks with Zong Qinghou, CEO of Wahaha Group, and learned to practice Taiji and appreciate the tea ceremony.

Launch of Baosteel (Changshu) Leadership Development Center

Baosteel (Changshu) Leadership Development Center (Shanghu Village, Baosteel) is the base of leadership training, a valley for research and development, a platform for the cooperation with strategic partners for innovation, and a showcase of the brand image. The Center was officially put into use on April 1, 2011, to host the 8th decision maker seminar themed Control over the Complex Environment. By the end of December 2011, it had hosted 147 training sessions and meetings, and received 6,714 people. Philip Kotler, a famous guru of management science and Father of Marketing, and Noel Tichy, a global leadership guru and professor at the University of Michigan came to the Center to give lectures in 2011. Shanghu Village of Baosteel was widely acclaimed for its success in hosting of many meetings and training sessions including meetings of Baosteel Group, its board of directors and board of supervisors, Baosteel Employee Forum on Economic and Technological Innovation, Baosteel-Mitsui Management Exchange, Baosteel-China Steel (Taiwan) Exchange on Human Resources, Baosteel seminar for management, and serial job trainings for management taff.

Learning Platform for Employees

The Baosteel e-Learning system was launched in July 2000, and upgraded in October 2008 to cover all the employees. The system supports online learning, virtual classrooms and offline learning, providing a platform where the employees can study whenever and wherever they want to.

In 2011, 388 training programs were carried out through the Baosteel e-Learning system, giving a total of 410 courses to 116,000 trainees. Nearly 40% of the training programs of Baosteel Talent Development Institute are wholly or partly carried out through the e-Learning system.

After years of curriculum development, Baosteel has developed a series of e-learning courses with distinct features, such as party construction and corporate culture, grassroots management, steel products, steel production process, case study of safety incidents, and humanistic cultivation. Nearly 70% of all the courses were e-learning courses.

The e-learning system was awarded the second prize of modernized management innovation of the metallurgical industry, the second prize of modernized management innovation of Shanghai, and the Best Virtual Classroom Application Prize of the China Enterprises and Informatization Forum.

First Baosteel Youth Business Plan Competition to Push Forward Youth Innovation and Efficiency Improvement Program

To spot more enterprising youth, create an atmosphere of innovation, inspire the youth’s enthusiasm in entrepreneurship, and foster their abilities, the Communist Youth League (CYL) Committee, the Planning and Development Department, and the Human Resources Department of Baosteel jointly launched the first Baosteel Youth Business Plan Competition. Featuring a series of programs such as lectures on entrepreneurship, preliminary competition and onsite oral defense of the plan, the “IPO Family of Entrepreneurs” pre-competition exchange, the final, and the luncheon for the winning team and corporate leaders, the competition attracted 45 teams comprising nearly 200 young employees from Baosteel subsidiaries in Shanghai.

Youth Career Guidance Program

CYL Committee of Baosteel compiled and revised the Growth Diary, and distributed copies to newly-recruited college graduates, to record their growth in the Corporation. Through the meetings of new employees with administrative and Party leaders of the Corporation and growth report meetings of the new employees organized by grassroots CYL organizations, we helped guide the young employees to do a good job on their post, fit into the corporate culture and values, and improve their capabilities.

Technological Innovation of Employees

Innovation of Specialized Technical Personnel

Baosteel continued to develop its technological innovation system, upheld the strategy of developing leading technology, and was committed to the innovation of high-end products and core technological research and development. Baoshan Iron & Steel Co, Ltd. takes the lead in the Baosteel Group in terms of technological innovation in the steel industry, and continues to produce highly competitive steel products, meeting the needs of national economic development and the demand for materials posed by major construction projects. Meanwhile, Baosteel has actively pushed forward the technological collaboration and sharing across the Group, planned and organized technological promotion and support for steel units such as Ningbo Iron & Steel Co., Ltd. and Xinjiang Bayi Iron & Steel Co., Ltd., to improve the manufacturing capacity and expand the product mix, improve the overall technological level of the steel industry, and support the enterprise in a harsh market.

Tailored to the needs of high-level technical personnel, trainings such as “Golden Apple” Team Seminar and “Close to Academicians and Users” were organized to foster outstanding technical personnel with strong abilities to lead the technological development, in research and development and making technological breakthroughs; Top 10 thematic seminars, crossregional and cross-unit staff exchange were offered to backbone technical personnel, to improve their technical competency and abilities to solve technical problems; training on the basic technological knowledge, basic tools and basic methods were provided to new technical personnel to reinforce their skills. Meanwhile, we pushed forward the training of “whole-process engineers”, and continued the “Technical Competency Training Camp” program, to improve the employees’ overall ability to solve technical problems and make technical innovations.

As to the training of skilled personnel, we focused on the improvement of practical capabilities required for technical posts, and further carried out the Skill Buildup Plan ; according to the competency of personnel in charge of fixed point inspection of equipment, improve their skills from five major aspects, namely, professional attainment, professional skills for fixed point inspection of equipment, equipment management theory, practical experience in equipment inspection and fixing, and exploration of skills required for the post; and organized the training camp for highly skilled personnel centering around four modules, namely, professional attainment and improvement, TRIZ basics and application, lecture-learning and practices, and exploration, training and exchanges.

Blue-collar Innovation

Over the years, Baosteel has vigorously pushed forward the technological innovation of employees and has scored remarkable results.Among the 6.2 patents generated in Baosteel on average per day, 48% are made by frontline employees; among the six technical secrets generated on average per day, 40% are achieved by frontline employees. Among all the 10 workers winning the National Prize for Progress in Science and Technology around the country, three are from Baosteel. In addition, two Baosteel workers have been awarded the honorary title of “Contemporary Worker Inventor” of China, 11 “Shanghai Worker Inventor”, and 15 “Baosteel Worker Inventor”. During their inspection tour in Baosteel, inspectors from Shanghai Federation of Trade Unions spoke highly of the achievements in technological innovation of our employees, and termed it as “Baosteel phenomenon”.

Employee Innovation Studio

By 2011, the Group had boasted 66 innovation studios.

At the opening ceremony of the 2011 National Science and Technology Week and Shanghai Science and Technology Festival, Shanghai Federation of Trade Unions conferred the tablets for the first 20 innovation studios of model workers. Baosteel Kong Liming Mechanical & Electrical Technological Innovation Studio is coded No.1 among this batch of innovation studios.

Employee Forum on Economic Technological Innovation

To sum up experiences, absorb strengths from others, encourage the economic and technological innovation of employees, and lay a solid foundation for the second undertaking, scientific development and capability strengthening of Baosteel, on August 25, the 2011 Baosteel Employee Forum on Economic Technological Innovation, with the theme of “Innovation and Corporate Competitiveness”, was held in Baosteel (Changshu) Leadership Development Center. It attracted about 160 representatives from domestic and international prestigious enterprises and experts to share their results and experiences in employees’ innovation, and explore the new approach of making innovations under the new circumstances.

Technological Innovation Achievements

Baosteel planned and/or participated in the Shanghai Exhibition of Technological Innovation of Employees, the 20th National Exhibition of Inventions, the 63rd iENA Nuremberg, and the 5th International Warsaw Invention Show (IWIS). In domestic and international exchange programs, the employee innovation results of Baosteel attracted extensive attraction and won high praise. At the National Exhibition of Inventions, among the 146 participating programs of Baosteel, 27 won the gold award, 26 the silver award and 45 the bronze award; at the iENA Nuremberg, Baosteel competed with nearly 800 inventions from over 30 countries and regions in the world and won three gold awards, accounting for 50% of the total gold awards won by the Chinese delegation; at the IWIS, Baosteel won seven gold awards and one silver award with its eight participating programs.

Setting op Role Models

Baosteel grants the Golden Bull Award and the Silver Bull Award annually as an acknowledgement of those employees who are hard-working and dedicated, show integrity and have made outstanding contribution to the new round of development of Baosteel. In 2011, after several rounds of recommendation and appraisal, 20 employees were awarded the Golden Bull Award and 100 the Silver Bull Award. Among the award winners, more than 90% are frontline employees or low-level technical and business management personnel.

The annual Baosteel Persons of the Year Awarding Ceremony is held at the beginning or end of a year to acknowledge employees with outstanding contribution, review and sum up the work highlights of the past year, and demonstrate the progress, innovations and values of Baosteel employees in the second undertaking. It has become a cultural brand program of Baosteel with lasting influence.

The 2011 Baosteel Persons of the Year Awarding Ceremony focused on the corporate strategy, central tasks, and the corporate vision of “employees developing together with the Corporation”. It consisted of four chapters: “Products Science & Technology”, “Service Value”, “Environmental Protection Values”, and “Corporate Culture Vigor”. It reviewed the touching moments of 2011, demonstrated the outstanding performances each industry and section feels proud of and deems worthy of sharing and showed the dedication of our employees, including: representatives of blue-collar innovation who continue to make innovations, realize their values, and develop together with the Corporation; the production, sales and research teams who closely cooperate with each other to achievements to realize the glories and dreams of Baosteel;business developers who are passionate for exploring business across the country; and young employees who are energetic, passionate, and versatile.

Remuneration & Welfare Policy

Baosteel has adopted a flexible incentive mechanism under which multiple long-term incentives are preferred to the previous immediate single-time incentives, and provided more welfare choices for employees, so that all the employees were inspired to make further improvements in their career life.

The Corporation promoted the “sunshine” compensation and benefits management with the e-HR system and thus realized the closed-loop management for the distribution, statistics and monitoring of remuneration. Employees may log in this self-service system to access the information on personal compensation and benefits.

Baosteel has adhered to the principle of determining remuneration according to employees’ performance and abilities and based upon the assessment of post value. Moreover, in line with the market trends, Baosteel provided satisfactory remuneration for all kinds of talents.

In keeping with the related national and local policies and laws, Baosteel paid in full all the mandatory social insurance premiums and welfare for all employees in a timely manner, including basic pension, basic medical insurance, unemployment insurance, work-related injury insurance, maternity insurance, housing reserve fund, and strictly complied with the paid vacation system. In light of the unique features of the enterprise, Baosteel also bought group casualty insurance and other supplementary benefits for its employees, such as annuity and Employee Health Plan, as well as staff meals, health screening, and labor protection necessities.

137 member companies of Baosteel took part in the Baosteel Annuity Program in 2011.In accordance with related rules, all Baosteel employees except those who had worked in the Corporation for less than one year received their annuities.

In 2011, Baosteel subsidiaries in Shanghai gave out supplementary housing reserve fund to their employees, making it easier for them, especially the young employees, to buy their homes and repay the loans.

Difficulty Assistance

Baosteel provides assistance to employees and their families through a long-term mechanism,and the standards for such assistance are adjusted dynamically according to change of the overall situation.

Cultural & Sports Activities

In 2011, Baosteel held its Ninth Art Festival for Employees. The festival was composed of five parts: the Sixth “Wonderful Employees” Team Art Contest, “Songs to the CPC” Singing Festival in Commemoration of the 90th anniversary of the Communist Party of China, “Wonderful Baosteel” Story-telling Gathering, “Arts at Baosteel” Album of Calligraphy and Seal-cutting Works by Baosteel Employees, and “A Baosteel in Colors” Painting Album. According to available statistics,there were altogether over 30,000 people taking part in these activities.

Baosteel organized 35 courses and lectures on basic digital photography, yoga, and vocal music in 2011, and received more than 1,500 person-time of participants. “Teams Hand-inhand” sports series was launched in March 2011,with one sport as the theme event every month.By now, thousands of employees have taken part in practices or contests of tennis, badminton, billiard, Chinese chess, swimming, Joker First (or Daguai Luzi, a poker game popular in China),and board games. The Baosteel Cup Swimming Contest was organized in July 2011 and more than 200 employees from Baosteel member units in Shanghai participated in the contest.

Employee Health Plan

Baosteel Employee Health Plan accomplished two tasks in 2011: The plan was well managed and provided various options to the employees’ satisfaction. The online platform was improved to be multifunctional, efficient and convenient, providing premium quality services for all the employees.

By the end of 2011, 10 subsidiaries of Baosteel Group in Shanghai had introduced the Employee Health Plan, covering 60,779 employees as stated on 31 December 2011, 14,539 more than the previous year. A total of 39,054 employees participated in fitness activities through the Employee Health Plan, accounting for 64.25% of the total. Twenty-five fitness centers in Shanghai signed cooperation agreements with Baosteel,11 more than the previous year.

“Good Life”, an online service platform for Baosteel Employee Health Plan was completed and put into use in 2011. Baosteel employees in Shanghai can log in the platform that incorporates service, settlement and management to access the information on their Health IC Cards.

Happy Retirement Life

Baosteel Senior Citizens’ College

There were 146 classes under 38 majors in Baosteel Senior Citizens’ College in 2011. New students were enrolled for 29 majors into 79 classes, and 11 of these majors were new. Altogether,6,043 person times studied in the college throughout the year. The college received the title of Advanced Group of Senior Citizens’ Education in Shanghai on the Working Conference on Senior Citizens’ Education in Shanghai, and was honored as Advanced Group in Promoting Senior Citizens’ Education by China Association of the Universities for the Aged (CAUA).

The college conducted in 2011 “Survey on the Studying Needs by the Baosteel Retirees”. The college council passed The Development Plan for Baosteel Senior Citizens’ College 2011-2015, and compiled Keeping Healthy with the Traditional Chinese Medicine and Everyday English for Senior Citizens as teaching materials.

Colorful Retirement Life

The Seventh Baosteel Art Festival for Senior Citizens was successfully organized in 2011. 1,550 people participated in the performances and exhibitions in 10 categories, including vocal music, dance, fashion, speech, drama, calligraphy, paper-cutting, painting, photography,and handicraft. The 5th Baosteel Healthy Seniors Selection was conducted as well, and 42 retirees were selected.

The recreational rooms, clubs and Baosteel Senior Citizens’ College are open to all retirees in the community for free. The students of the college and the Songtao Poem Club members gave voluntary performances in the Yangxing Community and Baoshan Senior Citizens’ Home. The Baosteel retirees have been playing an active role in the community cultural construction.

Baosteel Committee for the Wellbeing of the Youth has fostered a large number of talented young employees through various activities,such as lectures on the corporate culture and Baosteel values, sessions to pass on work experiences,dissertation and oral defenses tutoring and even match-making for single employees.Baosteel Association of Senior Experts, Scientists and Technicians established a platform for Baosteel retirees to make new contributions in their retirement.

A company’s focus on production safety represents a people-oriented corporate culture that complies with laws and regulations and shows respects for scientific management. Baosteel has formed the corporate culture of “spirit of strictness and endeavor, road of learning and innovation, and aim to be the best”, and this also serves as the core of our safety management. Strictness on every detail is the basic law for safety management in Baosteel, and indispensable for the prevention of accidents. Learning and innovation as well as the aim to be the best is the driving force for the safety management in Baosteel, and safety management means constantly “fussing about” safety issues. The aim to be the best is the ultimate goal of safety management in Baosteel, and we have to exhaust every means to ensure production safety. Our motto is Safety First, Zero Accident, and No Violation of Rules.

Baosteel improved its Body Sense Safety Training Center to launch better-targeted safety training, tested the effectiveness of the occupational health and safety management system through standardized safe production, and carried out safety inspections especially in key areas. We also made efforts to smooth compliance management of ongoing projects, make necessary rectifications, and introduce new models for occupational health management; strengthened the control over hazardous chemicals and major sources of danger, improved the emergency management system, enhanced the capacity to address accidents, and identified and removed potential risks to ensure better safety. We also worked to enhance the quality of the personnel engaged in safety management, improved our fire control and urged subsidiaries to clearly defined the responsibilities related to safe production so as to raise Bao steel’s overall level of safeproduction management.

Improve the Production Safety System

Joint inspections on the first Thursday of every month

The leaders in charge of safety organize joint safety inspections with the staff from functional departments on the first Thursday every month, to check the on-site situation of production safety on every project under construction. The inspection results are taken as part of the assessment of the persons-in-charge of safety. All the inspections are seriously conducted with PDCA (plan-do-check-act cycle). The inspectors have talks with on-site managers and workers,to identify, check, observe, discuss about, record and take feedback of safety issues. The safety inspections provide support for the safety management on the basic level and solve problems on site. They have been well received and welcomed by the employees.

New models of occupational health management

Baosteel conducted supervision on the standardization of occupational health management in all subsidiaries, improved the occupational health screening process, and enhanced the health screening efficiency. The Corporation promoted occupational hazard management by regions, and fully implemented it into the factories directly under Baosteel Group Corporation.Baosteel also made great efforts to foster a professional test and assessment team for occupational health, and Baosteel Engineering & Technology Group Co., Ltd. received nationallyrecognized certificates in this regard.

A 3-year Improvement Plan for Qualifications of Safety Personnel

Baosteel worked out an improvement plan for the personnel of the safety system to encourage safety personnel as well as frontline management staff to attend training program and become certified safety engineers by providing centralized training sessions and incentives. The Corporation also tried to enhance the capability of its safety management personnel through knowledge sharing, internal communication andon-post practices.

Better-targeted and more effective safety education and training

Baosteel conducted body sense basic safety training for new employees, and further safety management workshops for management staff; organized interactive group training for team heads, and self-management training for team members.

1. Baosteel established a Body Sense Safe- ty Training Center with an investment of over RMB 3 million where trainees could have a better understanding of the dangers and disastrous consequences of accidents by watching, participating in and experiencing simulated accidents such as mechanical injuries, falls, and electric shocks. In the center, trainees can get a basic idea of accidents with personal experience in real or simulated environments and communication with other team members. Then they learn correct operations and acquired safety knowledge from the trainers through explanations and model practices. Providing 5 training rooms and nearly 30 training programs, the center can accommodate 50 trainees a day and 250 persons a week. By the end of 2011, more than 9,000 employees have received training in the center.

2. Baosteel launched an online multimedia accident database to “build a firewall against accidents in mind and spread a safety net for life”. With this database, employees can watch replay of accidents, read through analysis and learn countermeasures. Accident cases were presented with animations and generated better effects by getting people interested with its originality.Since its launch in November 2011, over 4,200 employees have visited the database.

Vigorous efforts for the standardization of production safety

Baosteel was selected as one of the 22 model enterprises of production safety standardization by the State Administration of Work Safety. Its subsidiaries made self-inspection and corrections against the Specification for Production Safety Standardization and the respective standards for iron smelting, coking, sintering,steel smelting, steel rolling, and gas, to further test the effectiveness of their occupational health management systems and raise their level of safety management. Baosteel Co., Ltd. as a whole qualified for the certificate of first-class enterprises in production safety standardization. Ningbo Steel had some units passing the review for second-class production safety standardization.

Baosteel Employee BBS

The Baosteel employee BBS “Bridge” has been going on quite well since its official launch at the end of 2010. The BBS has seen a stable increase of users with the number approaching 40,000 by the end of 2011 and a monthly login count of over 360,000. New columns were added to the BBS in 2011, including Life Tips, Mental Refreshment, Communication, Green Apple World, and Window for Returned Students. Activities such as the third season of “Best Practice: My Show” and “Online Voting for the Young Ambassador of Baosteel” were carried out through the BBS and warmly received by employees. The Corporation worked out and distributed Opinions on the Development of Bridge BBS and Regulations for the Management of the Baosteel Employee Bridge BBS to further promote the development of the BBS and implementation of the reply-within-7-days system. The BBS also attracted attention from competent authorities and peer companies. The working team from the Publicity Administration under the State-owned Assets Supervision and Administration Commission of the State Council heard report on Bridge BBS during its visit to Baosteel, and peer companies such as ICBC and Air China also exchanged ideas on corporate website construction with the Youth League Committee of Baosteel.

Warmth of Family Letters carried on

Baosteel’s “Warmth of Family Letters” program was launched in 2009 and in the program, grassroots organizations of the Communist Youth League sent letters to the families of League members. Altogether 7,082 letters were sent in 2011, and 531 replies received. In early 2011, the Baosteel Communist Youth League Committee selected 15 best letters and 7 best replies, and compiled the Collection of Best Family Letters of Baosteel 2010-2011, which was distributed to 969 grassroots Communist Youth League branches within Baosteel. These family letters brought warmth to the young employees of Baosteel.

Addressing Top Concerns of Employees

Baosteel gets to know about employees’ thoughts by regularly collecting their requests and complaints, keeping an eye on the "Bridge", and conducting survey for Questions to Baosteel Leaders. Baosteel subsidiaries worked out implementation measures and rules based on their own situations, to effectively collect employees’ requests and complaints.

In 2011, the Corporation included the following programs into its 4D Project: establishing a housing subsidy plan for young employees, establishing standard humanistic programs for small subsidiaries outside Shanghai, and establishing an employee mutual-help mechanism. The 4D project team was organized with the President of the Corporation in charge, and the Chairman of the Workers’ Union as the executive officer to conduct detailed surveys and studies concerning these programs. FeasibilityReport on the Construction of Transitional Low-rent Housing for Young Employees was reviewed and approved in principle at the president’s working conference with the pilot project to be launched in Baosteel Co., Ltd. Guidance on Establishing Standard Humanistic Programs in Small Subsidiaries outside Shanghai and Guidance on Establishing an Employee Mutual-help Mechanism were issued, and the respective programs carried out.

A total of 128 top concerns were identified and submitted by Baosteel subsidiaries in 2011, according to Questions to Baosteel Leaders 2010 and the employees’ requests and complaints collected in daily work. By the end of December 2011, 123 of these concerns or 96.1% of the total had been solved.

Collective Consultation and Collective Contracts

In 2011, Baosteel signed collective contracts with employees through equal consultation. The collective contracts covered all employees, and the contractual terms were all honored.

The Corporation and its subsidiaries revised a total of 128 items in their collective agreements through full consultation between the authority and the employees in 2011 and revisions mainly involved labor safety and health, supplementary housing reserve fund, honor incentive mechanism, grassroots team building, health plan and health checks, as well as difficulty assistance. The new collective contract was more relevant to employees, and played a significant role in building up a harmonious labor relation and protecting the employees’ rights and interests.

Safeguarding the National Unity

Out of the 26,131 employees of Xinjiang Bayi Iron & Steel Co., Ltd. of Baosteel, 5,376 are from minority groups, accounting for 20.57%. The minority employees constitute an integral part of the company, and put the company in a good position for promoting national unity.

Keeping in line with the policies of Xinjiang Uyghur Autonomous Region, Xinjiang Bayi Iron & Steel Co., Ltd. set May as the Month of Strengthening the National Unity and has held relevant activities every year since 1983. In the activities, employees from all ethnic groups get to know each other better make progresses shoulder by shoulder.

In May 2011, 29 forums were held on topics such as “The Company and Development”, “National Unity and Development”, “Bayi Company and Development” and etc. Renowned professors from the Party School of Xinjiang Uyghur Autonomous Region were invited to give a lecture on “CPC’s Policies for Ethnic Affairs and the Prosperity of Minority Groups in Xinjiang”. Employees were organized to visit the Company History Museum, and employees from minority groups wrote working diaries. Various other cultural and sports activities were also held to promote the solidarity and mutual understanding and respect between employees of various ethnic groups. Zibaidula?Awuti and Li Guo from Bayi Iron & Steel Co., Ltd. were honored as “Models for National Unity and Progress” on the 9th Honoring Ceremony for the National Unity and Progress of Urumqi.