Brake Systems Co., Ltd.(referred to as “company” hereinafter) and labor union of Brake Systems Co., Ltd on behalf of all staff (referred to as “company labor union” hereinafter) sign this contract according to “Labor Law of People’s Republic of China”, “Union Law of People’s Republic of China”, “Labor Contract Law of People’s Republic of China”, “Collective Contract Regulations” from the original Labor and Social Security Department of China, “Collective Contract Regulations of Jiangsu Province” and “Collective Contract of Automotive Industrial Co., Ltd.”
第一章 总 则Chapter 1 General Provisions
Clause 1 This contract aims at safeguarding the legal benefit of company and staff, coordinating labor relationship between two parties, motivate staff’s activity and creativity, promoting harmony by taking part in reform, consolidating harmony by speeding up development, safeguarding harmony by maintaining stability, pushing forward harmony by increasing ability in order to form a favorable environment for company’s comprehensive, coordinated and sustainable development.
Clause 2 This contract is equally legally binding to company and all staff that have labor relationship with it.
Standards like working conditions and pay agreed when company signs the contract with staff cannot be lower than ones in this contract.
Clause 3 Company will support labor union to protect staff’s legal benefit, independently carry out its work and distribute enough money to labor union in time.
Clause 4 Company should insist and improve the democratic staff management system, whose basic form is staff representative meeting and openness of factory affairs, respect, guarantee and safeguard staff’s right to take part in democratic decision, management and monitoring. Labor representatives must take part in important issues concerning staff’s own interest and the plan cannot be implemented unless it is lready discussed and agreed by staff representative meeting.
Clause 5 Company labor union will support company’s legal operation and scientific management, consistently increase core competitive power, educate all staff to fulfill their contracts, obey all kinds of regulations, grow their comprehensive ability, complete their own work, ensure to complete company’s annual operation target and all important issues and speed up realization of company’s medium and long term strategic targets.
Clause 6 Company and labor union should legally handle relationship among reform, development and stability in order to maintain normal work and production and co-create a harmonious enterprise.
第二章 劳动用工管理Chapter 2 employee recruitment management
Clause 7 Company should establish the HR rolling development plan and recruitment plan according to requirements of our development. Recruitment should be carried out by protocol, only the best ones can be hired after evaluation and choosing. When company is hiring, it should be done based on the principles of “first from internal then from external”, “open requirements, fair competition, comprehensive evaluation and choosing the best”.
Clause 8 Company should sign a written contract with staff hired according to national and local labor laws and regulations. Labor union should help and guide staff to sign the contract and monitor the fulfillment of these contracts.
Clause 9 Company should actively open up the market and increase job positions. Labor union should educate and guide staff to have a correct opinion of job choosing and increase their own ability in order to suit for the requirements of labor force marketization. Both parties should care about and guarantee staff’s jobs.
Clause 10 Company labor union will support company’s agreement and competitive restrictions with staff related to company’s confidentiality. Agreements about economic and lawful bindings and restrictions should be listed in the contract or annexes to prevent company’s legal interest from being invaded when they leave the company.
Clause 11 Company should define the fulfillment, termination, extension or removal in advance of labor contracts according to national and regional labor laws and regulations. When company wants to discharge staff due to economic reasons, it should inform labor union the economic discharge proposal 30 days in advance and labor union should come up with the feedback within 7days; if labor union has a different opinion, company should study its opinion and inform it the final decision in time with a written notice; if any employee applies for arbitrary or files a lawsuit because of company’s decision, labor union will give the employee legal support and help.
Clause 12 Company should build or complete a Labor Dispute Conciliation Committee in order to mediate labor dispute and coordinate labor relationship.
第三章 劳动报酬Chapter 3 Payement
Clause 13 Company should insist on the income distribution system in which the dominant form of distribution according to how much work has been done co-exists with diverse forms of distribution that remunerate other factors of production, insist on the principle “putting efficiency as priority meanwhile taking fairness into consideration”, uphold labor cost management mode, establish a salary growth system in which growth of staffs’ pay will be connected to increase of company’s profit and social price index in order to form a harmonious income distribution relationship.
Clause 14 Company should actively complete a scientific and reasonable salary system; improve a distribution system in which staff’s salary is connected to company’s profit and personal performance step by step; also further encourage people badly needed or in key positions in order to gradually form a long term excitation system.
Clause 15 Company should establish a salary collective negotiation system. Company and labor union should negotiate about staff annual salary, salary adjustment method and total salary value according to company’s profit every year, labor productivity, HR cost rate, suggestive salary in local labor market, suggestive salary standard, minimum salary standard, urban citizen CPI(consumer price index). Company should discuss with labor union to decide or modify distribution systems like salary.
Company and labor union should discuss to decide adjustment rate of staff’s salary based on company’s operation in the actual year. If company reaches its main operation and economic target in 2009, salary of all staff under the condition that they finish their normal work will increase no more than 5%.
Clause 16 Company must pay total salary to all staff in the form of currency on 15th in every month; it cannot reduce or delay to pay for no particular reasons.
Clause 17 Company will follow Govenment’s Minimum Salary Standard Guarantee System. During the period of work and production stoppage due to severe operation difficulties, money that company pays to post waiting staff cannot be lower than 80% of Govenment’s Minimum Salary Standard.
Clause 18 Money Company pays to staff for extra work time should be in line with “Jiangsu Province Pay Regulations”, “Govenment’s Enterprise Pay Method” and company’s relative regulations.
第四章 工作时间和休息休假Chapter 4 Working Time, Rest and Vacations
Clause 19 Company will follow national regulations that working hours every day will be no more than 8 hours and working hours every week will be no more than 40 hours. Company can choose an unfixed or comprehensive working hour calculation system suitable for company’s operation and management after discussing with labor union, but the working hour calculation system should be in line with relative national regulations.
Clause 20 Company should arrange the working plan reasonably, when extra working hours are really necessary in a short period due to needs of production, it should be carried out after being agreed by staff and labor union according to Labor Law.
Clause 21 Company should actually implement a system of paid annual vacation and legal holidays and festivals like home leave, marriage, funeral, family planning, etc. When staff cannot enjoy their annual vacation due to work, company should give some money to them according to regulations.
Clause 22 Company should manage staff’s medical period and vacation due to disease, non-industrial injury, industrial injury and occupational disease, reasonably arrange sick and injured staff to have medical vacations and go back to work. During medical treatment because of industrial injure, company cannot discharge labor relationship with them.
Clause 23 Company should actively encourage staff to take part in social benefit activity. Arrange necessary rest for staff who take part in blood and marrow donation according to relative regulations.
第五章 福利与保障Chapter 5 Security and Benefit
Clause 24 Company should promptly contribute legal social insurance and benefit like life, medical, industrial injury, maternity, unemployment and insurance and housing fund, etc. in full amount according to national regulations and report to staff representative meeting every year. Company should have a reserve for benefit and use it with a certain protocol and labor union should monitor its use.
Clause 25 Company should buy enterprise supplementary medical, group life and personal accident insurance for active staff, enterprise supplementary medical and group life insurance for retired people and veteran cadres, enterprise supplementary medical insurance for staff’s parents and only child (see details in “supplementary medical insurance regulations”). After staff’s death, their parents and only child will enjoy some treatment according to national regulations.
Clause 26 Company should establish and carry out “medical assistance method for especially difficult staff” and “relieve method for sick staff with a difficult life” according to Group Regulations. Company should have a special fund for labor union every year to help and assist medical treatment and sickness of staff with a difficult life.
Clause 27 Company will support Automotive Industrial Co., Ltd. to establish an “assistance fund” to economically support people with a difficult life when it’s necessary. Company and labor union should manage this issue together.
Clause 28 If staff get injured, disabled, dead or occupational diseases, expense according to national regulations should be paid for treatment, recovery, injury, disability and death.
Clause 29 Company will implement Govenment’s Old Staff Housing Subsidy Monetization Policy that area difference subsidy is 720 RMB/square meters and work age subsidy is 8.16 RMB/year x square meters.
Clause 30 For staff’s convenience and improving working efficiency, company will provide a lunch subsidy for all staff which is 6 RMB every day.
Clause 31 Company should pay festival bonus (Chinese New Year, May Day and National Day) in cash to all staff, bonus should be no less than 200 RMB.
Clause 32 Company should have a physical check and staff health management system. Company should arrange physical checks for males above 45 and females above 40, staff with a medium certificate or above and best employees every year and establish a staff health record.
Clause 33 Company should create conditions necessary for staff to have cultural and sports entertainment. Labor union should organize and manage to improve the quality of staff’s spare time.
第六章 劳动安全与卫生Chapter 6 Safety and Sanitation
Clause 34 Company should establish a feasible management system and standard combined with our reality and laws, regulations, procedures and standards in “Labor Law”, “Safety Production Law”, “Occupational Disease Prevention and Cure”, “Safety Production Regulations of Jiangsu Province”. Company should carry out a safety production responsibility system, implement safety responsibility for different levels and improve safety production management network. Company should annually report to Staff Representative Meeting about safety production situation.
Labor union should legally organize staff to take part in democratic management of safety production, have a democratic monitoring on company’s implementation about safety production and regulations, legally take part in safety accident investigation and protect staff’s legal benefit about safety production.
Clause 35 Working conditions and safety and sanitation facility must be designed, constructed, put into production and use at the same time with the main buildings when company prepares to build new or technically modify the buildings, labor union should monitor according to national regulations. Company should seriously consider labor union’s opinion and give written decisions back to labor union in time.
Clause 36 Company will establish an internal health allowance standard according to national regulations about health allowance for workers in toxic and harmful positions, “a standard for discharging labor protection goods” and different working places and types of work and give this allowance to all staff on a regular basis; provide safety production conditions in line with national or industry standards and necessary as well as qualified working protection gear according to different working types and environments. Company should organize annual physical check and rechecks for staff in positions related to silicon, dust, high temperature, high altitude, noise and other toxic or harmful positions. Time of their physical checks will be considered as normal presence. Company should give staff high temperature allowance and also special beverage allowance to high temperature positions according to regulations of local government.
Clause 37 Company should organize level 3 safety training for new staff according to “Enterprise Staff Working Safety and Sanitation Training Regulations”, only staff after passing examination can start their work. Special training and exams must be held for special occupation, they cannot start working until having a special certificate. For staff that changes their positions or get back to work, company should organize training and exams for them, they cannot start working without passing the exams.
Clause 38 When there is a industrial injury or an acute occupational poisoning, company should strictly follow the rules and report to superior department, safety production monitoring department and sanitation and epidemic prevention department and also labor union to co-join the accident investigation. Opinion from labor union should be studies and replied in time.
Labor union should assist company to monitor potential accidents and occupational hazards.
Clause 39 Company labor union will support company to strengthen safety management and mass working protection; take part in making up company’s working safety system, check implementation of working protection measures organize staff representatives to have patrol checks on safety management and important positions of safety production.
Company should educate staff to strictly follow safety production regulations and working instructions. If labor union finds out company gives directions against directions, forces workers to operate in danger or important potential accident risks or occupational hazards, it has the right to propose suggestions and company should study these suggestions and reply in time; if it finds out situation to put worker’s life in danger, labor union has the right to advise company to organize workers to quit there and solve the problem.
第七章 女职工特殊保护Chapter 7 Special Protection for Female Staff
Clause 40 Company should carry out special protection for female staff and sign “a special agreement for female staff benefit protection” as an annex of “Collective Contract” according to “Law Guaranteeing Rights and Interest of Women”, “Female Staff Working Protection Regulations” and “Regulations about Forbidden Working Scale for Female Staff”.
第八章 员工教育培训Chapter 8 Education and Training for Staff
Clause 41 Company should strengthen education and staff for staff and ensure enough training fund and completion of training. There should be a special fund for training, some of which should be used to train direct workers.
Clause 42 Company should strengthen to promote value and vision of Brembo, SAIC, and our own. Carry out the “ability promotion” project, establish and complete career training system for staff, continuously improve their professional ability, enforce safety and skill training before they start working, implement a licensed working system.
Chapter 43 Company should carry out “211” talent project, strengthen training for high-level business, technical talents, connect training and evaluation with their promotion and salary.
Chapter 44 Labor union should organize staff to launch working competition, “everyone becomes manager”, “six small improvements”, QC group activity, TPM and skill practice surrounding company’s annual operation target and “4+1” project in order to stimulate staff’s activeness and creativity so they will make contributions to reach annual operation target. Company should support labor union to launch mass economic and technical activity both administratively and financially.
Clause 45 Labor union should coordinate with company to teach staff that they should treat work in an attitude of owner and protect national and company property, organize staff to launch mass feasibility suggestions, technical innovation, extra skill study and training.
第九章 企业转改制Chapter 9 Company Transformation of ownership
Clause 46 When system change or staff cutting is necessary due to important changes like organization change, product structure adjustment, operation change, etc., it should strictly go through democratic procedures according to national or local regulations.
Clause 47 Company should consider both staff’s interest and company’s development during the transformation of ownership; labor union leader should be a member of system change leadership team and take part in all kinds of work during the system change. Company should strengthen propaganda and guidance of ownership transformation, the plan to do this and reposition of redundant personnel should be submitted to department in charge and upper level labor union for approval after being agreed by all parties, and then put on Staff Representative Meeting for approval after being publicized and combining with staff’s opinions.
Clause 48 When cutting staff number or reposition of redundant staff is necessary due to transformation of ownership, company should state the situation to all staff or labor union and listen to their opinions according to Labor Law. The plan should protect staff’s interest as much as possible; it also should be formed based on remedy measures after agreeing with labor union and staff representatives, audited by governmental department in charge, approved by Staff Representative Meeting and submitted to Labor Guarantee Department for approval.
Clause 49 For repositioned redundant personnel, they should be financially compensated according to labor laws and regulations of local government. Company’s other compensation plan should be approved by Staff Representative Meeting and submitted to department in charge for review.
Chapter 10 Contract Fulfillment, Modification, Discharge, Termination and Extension
Clause 50 This contract is valid from Jan.1, 2009 to Dec. 31, 2009, it will automatically terminate after valid date. 3 months before it expires, company and labor union should discuss to extend this collective contract, if it cannot be extended or a new contract needs to be signed by both parties out of special reasons, old contract will keep valid until the new contract take effect.
Clause 51 In order to fully fulfill this contract, during its validity period, both parties must strictly follow terms inside and fulfill their own obligations. Company and labor union will co-organize a team composed of company and staff representatives to check contract fulfillment and report in a written form to company and labor union.
Clause 52 during fulfillment of this contract, if any big problem happens, both parties should negotiate according to protocol regulated in SAIC and “Collective Negotiation Rules” of Govenment’s government. Single agreement and contract can be taken as an amendment or supplement to relative terms of this contract and reported to Govenment’s Labor and Social Security Department for approval. Single agreement and contract, as annexes, are as same binding as this contract.
Clause 53 regulations in “Jiangsu Collective Contract Regulations” are applicable for changing or discharging this collective contract. Any party cannot change this contract unless agreed by both parties.
Clause 54 a part of or all terms in this contract cannot be fulfilled due to any of following conditions, this contract can be changed or discharged:
(1) Laws, regulations and rules on which this collective contract is based are modified or abolished;
(2) A part of or all this contract cannot be fulfilled due to force majeure;
(3) This contract can be changed or discharged after being agreed by both parties;
(4) This contract cannot be fulfilled due to company is emerged by other companies, dismissed or goes to bankruptcy.
(5) Other circumstances regulated in laws, regulations and rules.
Democratic and publicity procedures are necessary when above mentioned items need to be changed except of (1).
Clause 55 When a dispute happens during company’s fulfillment of collective contract, both parties in the contract should negotiate to solve it respecting laws and regulations and based on the principle of equality and coordination. If negotiation is unsuccessful, the dispute can be given to company’s labor dispute conciliation committee or superior labor dispute conciliation committee for conciliation or applied for arbitrary according to legal procedures.
第十一章 附 则Chapter 11 Supplementary Articles
Clause 56 Company should ensure that negotiators have what’s necessary to fulfill their work. Time taken because of fulfilling their work as negotiators should be considered as normal work.
When negotiators are still in their term as negotiators, employer cannot unilaterally change or discharge their contracts; if the term of their contracts is shorter than their term as negotiators, their contracts will be automatically extended to the expiry date of their term as negotiators except that they have big misbehavior like severe violation of working rules or company regulations or they want to retire or refuse to extend the term of their labor contracts.
Clause 57 all other unaccomplished matter in this contract should be executed according to laws and regulations or negotiated to solve by both parties. If laws and regulations which this contract depends, it should be implemented according to new ones.
Clause 58 This contract is jointly reviewed and approved by company’s Staff Representative Meeting on August 8th 2009. Within 10 days after chief negotiators of both parties sign on this contract, company should report and submit it in triplicate to labor union and HR department of Automotive Industrial Co., Ltd. and Govenment’s labor security administration for review. If no disagreement is proposed within 15 days after receiving this contract, it will take effect.
This contract is in sextuplicate, one for each party, one for company’s Communist Party Committee, each one for labor union and HR department of Collective Contract of Automotive Industrial Co., Ltd. and one for Govenment’s Labor and Social Security Bureau.
Clause 59 After this contract takes effect, it should be publicized to all staff in time and in a proper way. Company should report annually to Staff Representative Meeting about implementation of this contract.
Clause 60 This contract will be explained and modified together by company and labor union.
Clause 61 Annexes of this contract include “a special agreement for female staff benefit protection”.
Company’s chief negotiator Labor union’s chief negotiator
Signature and stamp （签字盖章） Signature and stamp（签字盖章）
年 月 日 The date of 年 月 日 The date of