Albertsons 2006 Annual Report Download - page 6

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The traditional distribution component of the company’s supply chain services business competes directly
with a number of food wholesalers. The company believes it competes in this supply chain on the basis of
product price, quality and assortment, schedule and reliability of deliveries, the range and quality of services
provided, service fees, and the location of distribution facilities. The company’s third party logistics business
competes nationwide in a highly fragmented marketplace, which includes a number of large international and
domestic companies, as well as many smaller, more regional competitors. The company believes that it competes
in this business on the basis of warehousing and transportation logistics expertise, cost, and the ability to offer
both asset and non-asset based solutions as well as to design and manage a customer’s entire supply chain.
Employees
At February 25, 2006, the company had approximately 52,400 employees. Approximately 20,500
employees are covered by collective bargaining agreements. During fiscal 2006, 18 collective bargaining
agreements covering approximately 5,000 employees were re-negotiated. In fiscal 2007, 15 collective bargaining
agreements covering approximately 1,500 employees will expire. The company believes that it has generally
good relations with its employees.
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