Consolidated Medium-Term Human rights/Affairs Plan

In FY2005, we drew up the "Consolidated Medium-term Human Rights/ Personnel Plan, " and have conducted activities in the following six areas: human rights, respect for diversity and equal opportunity, health and safety, welfare, education and ability development, guarantee and creation of employment.
The purpose of this plan is to carry out personnel affairs based on the respect for fundamental human rights, to create a "Fair and Better Working Environment" on the basis of respect for diversity and by defining humans as a keyword, and to stimulate the employee motivation.

Number of employees (As of March 31, 2006)

		Male	Female	Total
Cosmo Oil	Employees	1,222	169	1,391
	Management	312	2	314
	Others(Note)	13	0	13
	Subtotal	1,547	171	1,718
Affiliates	Employees	1,160	119	1,279
	Management	424	1	425
	Others(Note)	19	0	19
	Subtotal	1,603	120	1,723
Total		3,150	291	3,441

Note: Seconded employees and full-time staffs for the labor union.

Years of Service (As of March 31, 2006)

	Years of Service
Male	22 years 1 month
Female	18 years 7 months
Average	21 years 9 months

Respect for diversity and equal opportunity

Aiming at workplaces where women can work actively, we maintain fair employment.For example, we appointed two female engineers at refineries and employed three female employees as sales representatives.
The employment rate of the handicapped is 1.9 percent, which exceeds the regulatory rate of 1.8 percent. In order for the handicapped to be able to work comfortably in the Cosmo Oil Group, we have worked to improve the awareness of staff members, to create a good working environment, and to promote normalization.
We set up a rule that allows employees that meet certain conditions to choose where they work. This aims to provide employees with a stable private life and comfortable working environment by lightening their burdens related to the child care, education, and nursing.

Hiring of new graduates

	April 2004	April 2005
Career-track personnel	25	36
Expert-track personnel	12	28
Non-career personnel	0	2
Total	37	66

Employment of the handicapped
(data submitted to Ministry of Health, Labor and Welfare in June 2006)

	June 1, 2005	June 1, 2006
Handicapped	42	43
(of which, handicapped with a high degree of disability)	19	21
Handicapped employment rate(Note)	1.8%	1.9%
Number of the handicapped still to be employed	0	0

Note: Regulatory employment rate: 1.8%. (Round figure at the second decimal.)

Welfare

According to the "Law for Measures to Support the Development of the Next Generation " enacted in 2003, we submitted a "General Business Owner's Action Plan" to the Ministry of Health, Labor, and Welfare in April 2005. The plan describes how to improve our work environment so that employees can well balance child care and work, and aims to achieve, among others, the target of at least one male employee and more than 70% of the eligible female employees taking child care leave.
Our employees are now allowed to take child care leave until their child grows up to 1.5 years old, provided that they cannot find a nursery or their spouse is ill, etc. As for the maternity leave granted to male employees whose wife is on maternity, we extended the period from three to five days, which exceed the regulatory period.
To encourage all the personnel to have a leisure time, we conduct campaigns to promote the use of summer holidays and achieve a vacation-taking rate of about 70 percent.

Number of employees who take maternity and child care leave, and who take the reinstatement support course

	FY2004		FY2005
	Female	Male	Female	Male
Maternity leave	8	0	6	0
Child care leave(Note1)	6 (12)	0	8 (11)	0
Reinstatement support course(Note2)	4	0	3	0
Infant care leave rate	88%	-	100%	-

Note1: Number of employees who applied for a leave in FY2005. The figure in parentheses shows the number of employees who took a leave in FY2005.
Note2: Since the figures in the last report contained an error, we now restate figures for FY2004.

Number of employees taking Nursing-care leave

	FY2004		FY2005
	Female	Male	Female	Male
Employees taking Nursing-care leave	0	0	2	0

Holiday (paid leave) rate

Holiday (paid leave) rate	78.4%

Number of paid holidays per year

Years of service	0	1	2	3
Cosmo Oil	15 days	17 days	19 days	21 days
Labor law	6 months: 10 days - 6 years and 6 months: 20 days

Note: A different cumulative paid leave policy exists which can be obtained for sickness, etc.

Labor hours (Average for Union Workers: for the Year)

Designated Labor Hours	1,820 hours
Overtime Labor Hours	203 hours
Total Labor Hours	2,023 hours

Education and ability development

In FY2000, we introduced an "In-house Recruiting System" that allowed any employees to apply for jobs offered by other departments or affiliates without having to give notice to their superior. In FY2005, there were jobs offered by 12 departments and six employees successfully found new positions.
Regarding our education system based on the position-based training, we added a CSR training course to the conventional ability development training. This mandatory course includes training in environmental issues, respect for human rights, and corporate ethics (compliance).
We now provide financial support to employees who take correspondence courses and external training courses as part of our support for personnel development.

In-house Staff Recruitment (Implementation Date: March, 2006)

	Number of Departments	Number of Employees
Number of Recruited Company Staffs	12	18
Number of Applicants	6	13
Number of Officially Employed	5	6

Tiered Educational Seminars

Training for Management Personnel

Program	Participants	Training Hours (hours)
Training for Company Staffs newly promoted to Line Chief	43	15
Training for Company Staffs newly promoted to Management Level	49	4.5

Training for Union Workers (career-track personnel)

Program	Participants	Training Hours (hours)
Training for Mid-career company staffs	67	34
Training for Company Staffs of 6-7th year	18	16
Training for Company Staffs of 2nd year	24	9.5
Training for New Company Staffs	36	366

Self-development (correspondence courses)

	FY2003	FY2004	FY2005
Number of courses	73	55	61
Number of Company Staffs receiving Correspondence Courses	154	151	128

Company Staffs acquiring Qualifications (As of March 31, 2006)

Qualifications	Cosmo Oil	Affiliate Companies	Total
Hazardous Materials Officer (Class A & B)	1,655	296	1,951
Boiler Operator (special, 1st & 2nd grade)	1,125	91	1,216
High-pressure gas production Safety Manager (Class A & B)	1,084	142	1,226
Pollution Control Manager (air, water, noise, etc.)	235	60	295
Qualified for Energy Management (electricity, heat)	143	42	185
Total	4,242	631	4,873

Guarantee and creation of employment

According to the "Law concerning Stabilization of Employment of Older Persons, " we started a "re-employment system" on April 1, 2006. This system replaces our existing re-employment support program and allows the elderly individuals to be rehired in the Cosmo Oil Group.
Apart from "life design training", which employees take at the age of 55 well before they retire, we provide "second career training" in order to support re-employment. Participants in the "second career training" who wish to be re-employed after retirement, can learn how to write CVs and tips for interviews.

Life Planning Seminar

● Life Planning Seminar (Management)

Date	Training Location	Subject Number of Company Staffs	Participants	Participation Rate
November 29 and 30	Shonan Seminar House	40	24	60%
December 6 and 7	Shonan Seminar House	40	27	68%
December 13 and 14	Shonan Seminar House	40	21	53%
February 7 and 8	Shonan Seminar House	40	26	65%
February 14 and 15	Shonan Seminar House	40	25	63%
Total		200	123	62%
Training hours: hours / person			14 hours

● Life Planning Seminar (Union Workers)

Date	Training Location	Subject Number of Company Staffs	Participants	Participation Rate
April 14 and 15	Chiba	33	13	39%
April 16 and 17	Chiba	34	8	24%
April 26 and 27	Matsuyama	21	12	57%
May 10 and 11	Yokkaichi	23	9	39%
May 12 and 13	Yokkaichi	23	14	61%
May 17 and 18	Sakaide	22	11	50%
May 24 and 25	Sakai	53	13	25%
June 21 and 22	Shonan Seminar House	47	14	30%
Total		256	94	37%
Training hours: hours / person			13.2 hours

Pre-retirement and Second Career Seminar

Date	Training Location	Subject Number of Company Staffs	Pre-retirement Seminar		Second Career Seminar
			Participants	Participation Rate	Participants	Participation Rate
August 31 to September 2	Shonan Seminar House	38	35	92%	17	45%
February 20 to 22	Shonan Seminar House	51	48	94%	19	37%
Total		89	83	93%	36	40%
Training hours: hours / person			13.5 hours		9 hours

Management and labor

Our labor-management contract states that the management and the labor union shall meet for discussions before any work conditions, such as employees' positions and employment, are altered. The top management and the labor union gather and discuss in regular meetings and in a variety of committees at the headquarters or at individual sites. In addition, we have set up the "Workshop for optimum working hour management" so as to prevent health problems due to overwork, to control labor hours appropriately, and promote the compliance with the 36 Agreement and the acquisition of holidays.

1. Management meeting	1 time	Information exchange
2. Capital and labor meeting	5 times	Spring labor offensive, workplace improvement
3. Appropriate management of appropriate labor hours committee	12 times	Promotion of shorter hours