Article 9 The joint venture shall give moral encouragement or material reward to those workers and staff who observe the venture's rules and regulations in an exemplary way and make fine achievements in fulfilling their tasks of production or other work, carrying on technical innovation and improving management. Those who have made outstanding achievements shall be promoted or their wage levels increased. The decision for such awards shall be made by the general manager and vice-general managers.

Article 10 The joint venture may, in accordance with the seriousness of the case, impose criticism or punishment on staff and workers who violate the rules, regulations or labor discipline with adverse effects to the joint venture necessary, may impose a fine or economic sanction. Those who commit serious mistakes and refuse to mend their ways despite repeated admonition may be expelled.

The sanctions shall be decided upon by the general manager and vice-general managers after seeking opinion from the venture's trade union organization and listening to the argument from the persons concerned. The sanction of discharge must be reported to the department in charge of the venture and the labor personnel department for the record.

Article 11 When the joint venture administers reward or punishment to those workers and staff appointed by the administrative organs of the government, the power and procedures for the ratification shall be handled in accordance with the "Interim Provisions of the State Council on Awarding and Punishment of Personnel in the State Administrative Organs" issued in 1957.

Article 12 The joint venture shall pay the Chinese workers and staff in accordance with the wage levels stipulated in Article 8 of the Management Provisions. The increase in wages shall be decided upon by the board of directors in the light of the regulations of contract, articles of association and the state of the venture's production and management. It is not necessary to keep to the scales set by state-run enterprises.

The real wages of the workers and staff of state-run enterprises in the locality in the same line of business stated in Article 8 of the Management Provisions means the average wages of the workers and staff in the state-run enterprises in the locality in the same line of business and with similar production scales and technical conditions. The concrete amounts of the wages shall be examined and approved by the local labor personnel department together with the financial department and the department in charge of the venture.