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Staff Diversion Policy in the Merger of Baosteel and Taigang
Legal analysis: the merger of Baosteel and TISCO does not involve the placement of TISCO employees. According to the Agreement on Free Equity Transfer of Taiyuan Iron and Steel (Group) Co., Ltd., it is clearly stated in the agreement that this transfer does not involve the diversion and resettlement of employees of Taigang Group.

Legal basis: People's Republic of China (PRC) Labor Law.

Article 1 This Law is formulated in accordance with the Constitution in order to protect the legitimate rights and interests of laborers, adjust labor relations, establish and maintain a labor system adapted to the socialist market economy, and promote economic development and social progress.

Article 2 This Law is applicable to enterprises, individual economic organizations (hereinafter referred to as employers) and laborers who have formed labor relations with them in People's Republic of China (PRC).

State organs, institutions, social organizations and laborers who have established labor contract relations with them shall be implemented in accordance with this Law.

Article 3 Laborers shall enjoy equal employment and choice of occupation, remuneration, rest and vacation, labor safety and health protection, vocational skills training, social insurance and welfare, submission of labor disputes and other labor rights as stipulated by law.

Laborers should complete labor tasks, improve their professional skills, implement labor safety and health laws and regulations, and observe labor discipline and professional ethics.

Article 4 The employing unit shall establish and improve rules and regulations in accordance with the law to ensure that workers enjoy their labor rights and perform their labor obligations.

Article 5 The state adopts various measures to promote employment, develop vocational education, formulate labor standards, adjust social income, improve social insurance, coordinate labor relations, and gradually improve the living standards of laborers.