Cherish every step of the way—your position

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The oil industry is not going to have an easy time in the coming years, so everyone should cherish their jobs. At the end of last year, the various rumors about salary cuts finally became a reality. The employees and teachers in various units all received a torrent of insults, including me. But after reading various messages online, my anger over the salary cut turned into a sense of crisis. Among China’s three major oil companies, only CNPC has reduced its employees’ salaries at present. The other two oil companies? 2016 will likely be even worse than 2015. Now, the three major oil companies – Sinopec, CNPC, and CNOOC – have issued official documents encouraging employees to find their own ways to make a living, to retire, and to compete for positions. Only CNPC is left. To be honest, I’m very scared. If I’m on standby. Let me fend for myself; I can’t guarantee that I’ll be able to earn my current annual salary. CNOOC: «Guiding Opinions on Improving the Mechanism for Employee Exit» 2016-01-01 In order to further improve the system that enables employees to enter and leave the company, in line with the requirements of the «Overall Plan for Deepening the Reform of Three Systems of China National Offshore Oil Corporation», and in accordance with relevant laws and regulations as well as the actual situation of the corporation, the following opinions are put forward: I. General Principles (1) Principle of compliance with laws and regulations. Carry out operations in accordance with **relevant laws and regulations as well as the guidelines set by the head office; handle labor relations properly in line with the law, and safeguard the legitimate rights and interests of both workers and enterprises. (II) The principle of being proactive and prudent. The head office and various units actively implement the principles of economic efficiency and effectiveness, tightening up labor management. At the same time, they take into account the specific circumstances of each unit, determine the pace and extent at which employees retire from their positions, respect employees’ choices, and follow proper procedures to ensure steady and thorough progress. (III) Principles of complementary reforms. It is implemented in a systematic and coordinated manner by closely integrating a sound personnel exit mechanism with the deepening of reforms in labor employment and salary distribution systems, the introduction of competitive recruitment processes, enhanced job management and contract management, as well as strengthened performance management. II. Specific Measures (1) Termination of the labor contract through negotiation. In cases of strategic transformation, business restructuring, etc., employees may choose to terminate the labor contract through mutual agreement; the respective employers shall dissolve the labor contract relationship with them and pay economic compensation in accordance with the law ； At the same time, each entity may, in light of actual circumstances and within the framework of relevant policies, provide appropriate one-time subsidies to enterprises. All units operating normally should strengthen assessment and establish a mechanism of survival of the fittest; by enhancing assessments, they can promote competition for positions and identify those who are redundant. Establish a mechanism for the termination of labor contracts upon expiration, improve exit pathways, and achieve a circular model that allows personnel to enter and leave. It mainly involves three aspects of work: First, strengthening the management of labor contracts and increasing efforts to proactively terminate contracts. For employees whose contracts meet the legal requirements and stipulations outlined in the labor contract for termination, the contracts shall be terminated after paying them the prescribed compensation ； Second, establish a competitive elimination system during the probation period for newly hired employees, formulate assessment and management rules that include the scope of evaluation and the methods used for assessment, and determine the proportion of employees to be eliminated dynamically based on the assessment results ； Third, conduct proper assessments upon the expiration of the first labor contract for those employees, and terminate their labor contracts in a timely manner if they do not meet the requirements. (II) Early retirement. For special types of jobs that comply with ** and local policies (including those involving toxic or harmful substances), employees can go through the procedures for early retirement as stipulated. Units that are undergoing significant structural adjustments and face substantial challenges in reassigning their staff should actively communicate with local social security authorities to obtain relevant policy support. Each unit may, in light of its actual circumstances and within the framework of relevant policies, provide retirees who take early retirement with an appropriate one-time corporate subsidy. (III) Internal retirement from duty. Those who need to be reassigned due to reasons such as industrial structure adjustments, organizational reforms, or economic layoffs, as well as offshore workers who have signed direct labor contracts with the enterprise and are within 5 years (including 5 years) of the legal retirement age, may opt for internal retirement upon their own application and with the approval of their respective units. Units may calculate their employees’ living expenses based on retirement scenarios, and determine the severance benefits by referring to the basic pension benefits under the social pooling system. The benefits for retirement from work are paid by each enterprise, and all organizations should ensure continuity in these benefits under both old and new policies. In accordance with regulations, various social insurances, enterprise supplementary insurance, and housing provident fund shall be paid at the rates applicable to retirees who have left their posts; the individual contribution portion shall be borne by the individuals themselves. Among them: In the first year of retirement on leave, the portions of various insurance premiums and housing provident fund that should be paid by the individual are deducted based on their living expenses; any amount exceeding what the individual is actually required to pay shall be borne by the enterprise. If the actual retirement benefit paid is lower than the local minimum wage standard, it shall be set at the minimum wage standard. During the period of leaving one’s job for retirement, the benefits associated with such retirement are adjusted in accordance with the policies regarding adjustments to basic social old-age insurance benefits. Upon reaching the legal retirement age, one goes through the retirement procedures to receive social pension benefits. Internal retirement due to leaving one’s post is a temporary measure for personnel to leave their positions, and it will be in effect until December 31, 2020; all units must approve such requests strictly. (IV) Training on standby. In units with a large number of redundant staff, the personnel to be assigned to positions can be determined through competitive recruitment and two-way selection. Employees of this company who have been with the company for over 10 years but are not currently working can choose to participate in layoff training. Application for layoff training must be submitted by the individual himself/herself, approved by the employer’s unit, and a layoff training agreement shall be signed to define the rights and obligations of both parties during the period of layoff training. The duration of the standby training period should be set reasonably, with a maximum limit of one year. During this period, employees may continue to compete for available positions within the system. During the period of waiting for assignment, one should report to the workplace regularly to attend training and related activities. During the layoff training period, the individual’s basic salary is paid as usual, and personal social insurance, supplementary insurance, and housing provident fund contributions are made regularly; if the payment is below the local minimum wage standard, it will be paid at the minimum wage level. The labor relationship remains unchanged during the training period, and the length of service is calculated continuously. If the labor contract expires during the period of standby training, the labor contract shall be terminated. Those who still have not been assigned to a post upon expiration of the probationary training period shall have their labor contracts terminated in accordance with regulations, and compensation shall be paid. III. Organization and Implementation (1) Raise awareness. All affiliated units must further enhance their understanding of controlling the total number of employees and achieving a smooth reallocation of personnel, and effectively change their approaches to employment. All units should, through forms such as studies by the Party committee’s central group, regular work meetings, staff meetings, and team meetings, promote and implement at all levels the importance of strengthening labor management. This will help employees understand that only by improving overall labor management and boosting labor productivity can a company’s competitiveness be enhanced and the value of its human resources increased. It is also necessary to firmly establish the concept of efficient and effective labor management, as well as the approach of advancing the establishment of mechanisms for personnel separation in a lawful and orderly manner. (II) Standardize operating procedures. Each affiliated unit shall formulate plans for the reallocation and placement of staff in light of the enterprise’s development strategy, the requirements for further reform, the optimization of labor organization, and the current status of the workforce. The personnel reallocation plans for each unit must be submitted to the head office for approval. All units shall carry out the corresponding **procedures** in accordance with relevant regulations. When formulating a plan for the reallocation of employees, it is necessary to consult with the employee representative council, seek its opinions, and make them public ； If an enterprise has not established a workers’ representative committee, it shall negotiate with the workers’ representatives **recommended by the enterprise’s employees** ； Each unit shall convene a workers’ representative assembly or a general meeting of all employees in accordance with the regulations for review and approval ； All units should make the workflow for diversion and placement public, to ensure that the entire process is carried out in an open and fair manner, in accordance with laws and regulations. In cases where there are a large number of people to be reassigned and the relevant local regulations exist, after the employee reassignment plan is approved, it should be submitted to the human resources and social security department at the same level for review and filing. (III) Improve supporting mechanisms. The head office, in line with efforts to control the overall number of employees and to reassign them to other positions, has developed incentive and restraint measures aimed at controlling the total workforce, optimizing employment, improving the efficiency of labor costs, and properly relocating employees who are no longer needed in their current roles. “Guiding Opinions on the Resettlement of Employees Who Have Left Their Posts” Sinopec Personnel [2015] No. 85 To all enterprises and institutions, as well as all branches/subsidiaries of the joint-stock company: In order to ensure and facilitate Sinopec’s efforts in deepening reforms and transitioning toward a new development model, to properly handle the resettlement of employees who have left their posts due to industrial restructuring and the strict implementation of the “three determinations” principle regarding competitive job assignments, and to further optimize the human resources structure and enhance labor productivity, these opinions are put forth in accordance with relevant laws and regulations and in light of Sinopec’s actual circumstances: I. Working Principles (1) Compliance with laws and regulations. Activities are carried out in accordance with **relevant laws and regulations as well as the rules set by Sinopec; labor relations are handled properly in line with the law, the legitimate rights and interests of those who have left their jobs are protected, and their basic living needs are ensured. (II) Benefit orientation. Implement the Party group’s requirement of “focusing on personnel development rather than business operations,” optimize human resource allocation, and (3) provide categorized guidance. Establish a comprehensive policy framework, adopt multiple channels for resettlement, formulate specific policies tailored to different situations, determine benefits reasonably, respect the choices of those leaving their jobs, and encourage organizations to innovate in devising resettlement methods based on actual conditions. (IV) Complementary implementation. Closely integrated with deepening reforms in labor employment and salary distribution, improving the foundations of human resource management, and implementing strict competitive recruitment based on the \"three fixed principles,\" systematic efforts are made to strengthen the mechanism for selecting the best candidates. (5) Proactive and prudent. Carefully formulate plans, carry out **procedures in accordance with laws and regulations, strengthen publicity and explanation, standardize work procedures, assign **responsibilities, and implement the plan in a prudent manner. II. Applicable Parties (1) These guidelines apply to employees who have lost their jobs as a result of the closure, suspension, merger, or transformation carried out as part of industrial structure adjustment ； Personnel who leave their posts due to strict competitive selection based on the “three stipulations” (including those who, due to age, physical condition, etc., are unable to handle jobs requiring high levels of physical labor) ； Those who are unable to carry out normal work due to injuries, disabilities, or other reasons, such as those who have left their jobs. (II) The channels and policies for reassignment and placement stipulated in these guidelines apply to labor contract employees who were hired prior to October 1, 2014, as well as those hired after October 1, 2014, who are designated for key positions or are already working in such positions. The personnel on leave mentioned in this opinion refer only to the aforementioned eligible individuals. (III) For employees hired after October 1, 2014, whose intended assignment is to main positions or ordinary positions, and who were not working in key positions at the time of leaving their jobs, the employer shall terminate their labor contracts in accordance with the law and pay them economic compensation ； In cases where employees under labor dispatch lose their jobs, the employer shall, in accordance with the law and the labor dispatch agreement, return them to the labor dispatch agency ； If part-time workers lose their jobs, the employer should terminate the labor relationship with them. III. Channels for reassignment: Following the basic approach of \"actively revitalizing employment opportunities, encouraging retirement, implementing appropriate reassignments, and ensuring proper placement,\" those who lose their jobs are mainly reassigned through six channels: internal competition for positions, employment outside the company, early retirement, internal retirement programs, termination of labor contracts, and suspension of work with continued pay. (1) Internal competitive selection. 1. When there are vacant positions within the organization, eligible employees who have left their current roles can be organized to compete for those positions; those who are selected will receive salary and benefits in accordance with the organization’s relevant regulations. 2. If the organization has positions suitable for employees who have left their jobs, and those positions are currently occupied by workers from other categories, efforts should be intensified to dismiss such workers in accordance with the law, thereby freeing up those positions for employees who have left their jobs to compete for them. (II) Working outside the organization. 1. When there are job opportunities outside the organization (including both within and outside the Sinopec group), targeted training can be organized to assist those who are willing and capable in finding employment outside the organization. 2. When there is a need for labor within the system, the unit should actively mobilize its resources to achieve an optimized allocation of human resources through methods such as undertaking tasks within the system, providing human resources services, and making personnel transfers (including temporary transfers). Employees who are not currently working can compete for positions that are part of this optimized allocation, and upon taking up those positions, they will receive the corresponding salary and benefits. The organization should, based on factors such as the overall allocation of positions and the location of those positions, and using different methods for the coordinated allocation of human resources, determine the salary and welfare benefits for the personnel assigned through such coordination, after consulting with the units that have a need for those positions. The headquarters guides and assists various units in carrying out the coordinated allocation of human resources within the system by improving policies, establishing information platforms, and strengthening organizational coordination. If a unit achieves significant results in undertaking business tasks within the system, and this helps to reduce the overall costs of Sinopec, the headquarters may consider various factors and offer certain incentives to such units. 3. When there are business opportunities suitable for contracting or bulk job requirements outside the system, the organization can mobilize its resources to act as a contractor for such tasks outside the system, or arrange for the bulk deployment of human resources. Employees who are not on duty can compete for these positions, and upon being assigned to them, they will receive the corresponding salary and benefits. The organization should determine the salary and welfare benefits for employees working outside the system, taking into account factors such as the position outside the system and the location where the position is situated. If a unit undertakes business contracting outside its usual scope or provides large-scale human resource deployment and achieves significant results, the headquarters may consider offering certain incentives based on relevant factors, provided that this helps to increase the unit’s profitability. (III) Early retirement. 1. In accordance with the principle of \"taking into account history while being proactive and cautious,\" those who meet the requirements are encouraged to apply for early retirement (including resignation; the same applies hereafter), to be included in the management of enterprise retirees and to receive the relevant benefits applicable to retirees. 2. Employers should actively communicate with local social security authorities to reasonably determine the range of special occupations eligible for early retirement ； Units that are undergoing significant structural adjustments and face the challenge of finding new jobs for employees who have left their positions can communicate with local social security authorities to explore the possibility of allowing such employees to retire early, provided their roles do not fall under the category of special occupations. 3. Based on their own circumstances and financial capacity, units may provide certain subsidies to employees who leave their posts to take early retirement ； With communication and support from local social security authorities, employees who retire early are required to pay endowment insurance premiums for a certain number of years in one lump sum. (IV) Internal retirement. 1. For employees who are less than 5 years away from the legal retirement age, upon their own application and with the approval of their employer, and after signing an agreement between the two parties, they may opt for internal retirement in accordance with the relevant regulations of Sinopec. Employees on internal retirement are managed in a manner similar to retirees, and the actual amount of basic living allowance paid to them is kept at or below the level applicable to regular retirees. 2. Depending on its own circumstances and capacity, as well as taking historical factors into account, the unit may provide certain subsidies for internal retirement to employees who meet specific criteria and have left their positions. (5) Termination and dissolution of the labor contract. 1. Upon mutual agreement between the employer and the employee who is leaving the job, and provided that the employee is willing to terminate the labor contract in accordance with the law, the two parties shall sign an agreement to go through the procedures for terminating the labor contract. 2. When employees leave their positions and their labor contracts are terminated or ended, in addition to providing economic compensation in accordance with the law, the employer may also set reasonable payment conditions to offer a one-time subsidy. 3. After employees who leave their positions have their labor contracts terminated, the employer should promptly assist them with procedures such as transferring their social insurance coverage and housing fund accounts, transferring their personnel files, and transferring their membership in party or youth organizations. The matters related to enterprise annuities should also be handled in accordance with relevant regulations. 4. Those whose labor contracts are terminated or ended in accordance with the economic compensation and subsidy policies stipulated in these guidelines are not eligible for Sinopec’s living assistance programs (such programs apply only to those whose labor contracts were terminated under agreement before the completion of the restructuring process, and who meet the specified conditions). (VI) Suspension from work with continued pay. 1. If employees who leave their positions are not reassigned through the aforementioned channels, they shall be placed on suspension with pay, and entitled to such suspension-with-pay benefits. Those on suspension with pay can be given periodic leave, but they must report to the workplace regularly to attend training and related activities. 2. During the initial period of suspension from work with continued pay, the employer should appropriately reduce the benefits of those on suspended leave with pay, depending on the reasons for the suspension, and gradually reduce these benefits as the duration of the suspension increases. For those on unpaid leave for an extended period, the benefits shall be determined on a tiered basis, with lower benefits the longer the time remaining until the statutory retirement age and the shorter the length of service in the company; these benefits can be set in line with those offered for early retirement, and they should also be coordinated with other options for reassignment. Subject to the regulations in place, the minimum can be set at a certain percentage of the local minimum wage standard. 3. Employees on suspension with pay can, once they reach the retirement age and meet the relevant conditions, be further reassigned through appropriate channels. If the labor contract expires during the period of suspension with pay, the labor contract shall be terminated. For employees on paid suspension with a short length of service in the organization, a reasonable period for such suspension should be set; if they are assigned work during that period but still do not resume work upon its expiration, their employment contract should be terminated. 4. Units are encouraged to further innovate, in light of actual circumstances, methods for reassigning employees who are on leave but still receive their salaries, and to encourage and support such employees in starting their own businesses. (1) Organizations can carry out targeted training to help employees who wish to start their own businesses and are on paid leave improve their entrepreneurial skills. (2) Those on suspension with pay who wish to attempt self-employment or find a job on their own may enter into an agreement with their employer, specifying the duration for which the employment relationship will be maintained as well as the relevant matters during that period. Upon the end of this period, they may either terminate the employment contract through negotiation or continue to be on suspension with pay. (3) For employees who wish to start their own businesses but lack the startup capital, the employer can explore the use of external funds to establish a \"self-employment fund\" to provide them with appropriate support and assistance. (4) Subject to compliance with relevant regulations, an entity may, on the condition of giving priority to hiring employees on suspended pay, enter into joint ventures with socially-owned entities that have standardized management and make use of idle assets from non-core businesses, or lease such idle assets to qualified socially-owned entities for operation. (5) Through policy guidance, employers can encourage employees on paid leave to work at restructured enterprises or the contractors responsible for business (service) outsourcing. IV. Job Responsibilities (1) The relevant departments at the headquarters and the business units are responsible for organizing and guiding the entities in carrying out industrial structure adjustments, strictly implementing the \"three determinations\" policy, formulating relevant policies, approving plans for shutting down, merging, or transforming enterprises as well as implementation plans for major such projects. They also assist these entities in making business adjustments, pursuing development and transformation, handling asset disposals, and arranging for the reassignment of employees, while helping them to coordinate with local authorities and secure appropriate policies. For major shutdown and relocation projects: 1. The Development Planning Department, the Enterprise Reform and Management Department, the Capital Operation Department, and the relevant business departments shall conduct in-depth studies to determine the directions for business adjustments and development transformation; they shall guide and review the plans for shutdown, relocation, and property rights adjustments prepared by the respective units, and assist these units in engaging in discussions and negotiations with local authorities to secure policy support. 2. The Finance Department and the departments in charge provide key guidance and review asset disposal and land compensation plans, and assist the relevant units in seeking policy support from local authorities regarding land compensation and fund raising. 3. The Human Resources Department and the departments in charge provide key guidance and review plans for the reallocation of employees; they assist organizations in seeking policy support from local authorities regarding early retirement, re-employment, and access to subsidies for stable jobs. They also organize and coordinate the overall allocation of human resources within the system. 4. Other departments at the headquarters guide the relevant work of the unit in accordance with their respective responsibilities. (II) The unit is the responsible and implementing entity for industrial structure adjustment and the strict implementation of the \"three determinations\" policy. It is tasked with formulating overall plans for industrial structure adjustment and plans for strictly enforcing the \"three determinations\" in accordance with the requirements of the headquarters, and it is responsible for organizing these plans into action in a careful and steady manner, thereby ensuring the smooth operation of production and business activities as well as stability within the workforce. Regarding the resettlement of staff: 1. In accordance with the channels and policies specified in these guidelines, and taking into account the actual circumstances of the organization, various resettlement options should be carefully selected and utilized comprehensively. Measures for the resettlement of staff who leave their positions should be developed, and the relevant resettlement policies should be defined. These measures must be submitted to the competent department and the personnel department, and implemented after going through the required procedures ； Formulate a special plan for the reassignment of personnel involved in major shutdown, merger, and restructuring projects, and report to the relevant business department and the Human Resources Department as required. 2. It is necessary to clarify job responsibilities and ensure their fulfillment. In organizations with a large number of employees who are leaving their positions, it is necessary to establish a leadership body responsible for coordinating the placement of such employees, set up relevant administrative offices, and create a platform for collaborative work. 3. In accordance with the methods or plans approved by the headquarters, and on the basis of optimizing the allocation of human resources, efforts should be made to organize the reassignment of employees who are no longer needed for their current roles in a systematic and orderly manner, ensuring that all steps are carried out carefully and steadily. 4. It is necessary to communicate with local relevant departments to actively seek support policies for the resettlement of those who retire early or re-engage in employment, as well as preferential policies to assist workers on layoff but still receiving salaries in starting their own businesses. Enterprises that place a large number of employees who have left their jobs within the company through measures such as internal retirement or suspension from work with continued pay, should, in accordance with the provisions of the \"Notice on Issues Concerning Unemployment Insurance Support for Enterprises to Maintain Jobs (Ministry of Human Resources and Social Security Document No. [2014] 76)\", actively apply to the local authorities as enterprises that avoid or minimize layoffs and maintain job positions, so as to benefit from the policy of subsidies provided by the unemployment insurance fund for maintaining jobs. Units with the appropriate conditions can negotiate with local authorities to explore the implementation of entrusted management for personnel who are not on duty. V. Methods for Reshuffling and Placement (1) For employees who lose their jobs as a result of structural adjustments in the industry – including the shutdown or consolidation of oil production facilities, the suspension of oil and gas pipelines, reductions in the number of engineering teams, the shutdown or relocation of refining units, the liquidation, closure, dissolution or dismantling of affiliated companies, as well as the outsourcing of related business operations – they shall be reshuffled and placed according to the following methods: 1. In cases where business operations are suspended on a short-term or temporary basis, the affected employees generally receive training along with temporary leave; allowances and subsidies related to their positions are stopped, and performance bonuses are reduced or withheld. 2. In cases where operations are to be permanently or indefinitely shut down, restructured, or transferred, the entity shall make comprehensive use of relevant subsidies and aids. For those whose employment contracts are terminated due to transfer to work outside the system through organizational arrangements, an appropriate one-time subsidy may be provided. 3. The remaining employees who leave their positions shall continue to receive their salaries, in accordance with the relevant regulations regarding such situations. (III) For those who are unable to carry out normal work due to injuries, illnesses, disabilities, or other reasons, they are reassigned through the following methods: 1. For those who are older and meet the conditions for early retirement or internal retirement, they are mainly placed in such positions by arranging early retirement or internal retirement for them. 2. For employees who are more than 5 years away from the statutory retirement age, the age requirements for applying for internal retirement can be appropriately relaxed; alternatively, they may continue to work while receiving their salary, but will be managed and entitled to benefits in accordance with those of internally retired employees. 3. If employees who leave their jobs suffer work-related injuries, the relevant benefits shall comply with the regulations on work-related injury insurance in ** and in the location where the employer is situated. (IV) In the case of a joint venture in which the directly affiliated entity contributes capital and bears limited liability, and such joint venture is liquidated, closed down, revoked, or dissolved as a result of industrial structure adjustments, personnel reassignment shall be carried out in accordance with **laws and regulations as well as the articles of association of the joint venture. For the personnel assigned by our side and those organized to enter the joint venture as a structured unit, the relevant agreements or arrangements shall be followed. VI. Other Matters (1) In the event that subordinate units of a directly affiliated unit are liquidated, closed down, revoked, or dissolved as a whole, the directly affiliated unit is responsible for managing matters related to employees who retire or leave service internally, in order to ensure continuity in policies. (II) In the process of reassigning employees who are leaving their positions, organizations should pay attention to retaining key staff members in order to prevent the loss of talent. For those with a full-time bachelor’s degree or higher, those holding senior professional and technical titles or vocational skill levels of technician or above, as well as key personnel and those in short supply within the organization, except in cases where they lead employees in starting their own businesses or act as outsourcing parties to undertake business tasks for the organization, labor contracts are generally not terminated in accordance with the provisions of these guidelines, nor are economic compensations or subsidies provided, nor is suspension from work with continued pay implemented on a long-term basis. The unit should determine the specific scope of personnel based on actual conditions. (III) The headquarters, in conjunction with efforts to strengthen management of the total number of employees and labor costs, formulates incentive and restraint measures to reward those units that have made significant efforts and achieved good results in areas such as controlling the total workforce, optimizing employment, improving the efficiency of labor cost investment, and properly reassigning or placing employees who are no longer needed. The headquarters imposes accountability and penalties on those units that experience stability issues due to inadequate handling of the reassignment of employees who have left their positions, in accordance with relevant regulations. At the same time, to help organizations effectively reduce labor costs, the headquarters appropriately reduces the total wage amount and related labor cost indicators based on the adjustments in those organizations’ industrial structures. (IV) Regarding the payment of economic compensation and allowances in the process of reassigning employees who leave their positions, matters related to the payment of individual income tax shall be handled in accordance with the relevant regulations of ** and the local area. (5) When handling the reallocation and placement of certain special groups affected by historical issues, entities may refer to the relevant policies outlined in these guidelines, but must obtain approval from the competent department in charge and the Human Resources Department. (6) In the event that the provisions of these opinions are inconsistent with previous relevant regulations, these opinions shall prevail. If the implementation measures for the reallocation of employees who leave their positions, formulated by the unit in accordance with these guidelines, differ from the unit’s previous relevant regulations, the applicable policies shall, in principle, not be applied retroactively. VII. Work Requirements: The work of reassigning employees who leave their positions is highly policy-driven and challenging; it affects the vital interests of such employees and is related to Sinopec’s broader efforts to deepen reforms and pursue transformational development. All units must attach great importance to this task, with party and government leaders taking joint responsibility and stepping up leadership ； Relevant departments need to be organized to conduct thorough research on the policies, take into account regional and sectoral balance, carefully formulate plans, and implement them in a meticulous manner ； It is necessary to conduct a thorough analysis and assessment of stability risks, formulate **preplans**, assign responsibilities, carry out proper policy promotion and explanation, in order to effectively prevent and resolve conflicts ； It is necessary to strengthen communication with local relevant departments, actively seek policy support and operational assistance, work together to advance tasks, and maintain the stability of the enterprise. Issued by Sinopec Group on February 27, 2015. Everyone, the price of crude oil has dropped below $40. CNPC has signaled that 2016 will be an even tougher year than 2015. So everyone, hold on to your positions