Albertsons 2007 Annual Report Download - page 13
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o
wned stores, as well as the stores owned by retailers it supplies, include the location and image of the store; th
e
pr
i
ce, qua
li
ty an
d
var
i
ety o
f
pro
d
ucts; an
d
t
h
e qua
li
ty an
d
cons
i
stency o
f
serv
i
ce
.
T
he traditional distribution component of the Company’s Supply chain services business competes directly with
a
num
b
er o
ff
oo
d
w
h
o
l
esa
l
ers. T
h
e Company
b
e
li
eves
i
t competes
i
nt
hi
s supp
l
yc
h
a
i
nont
h
e
b
as
i
so
f
pro
d
uc
t
price, qualit
y
and assortment, schedule and reliabilit
y
of deliveries, the ran
g
e and qualit
y
of services provided
,
service fees and the location of distribution facilities. The Company’s third party logistics business compete
s
nat
i
onw
id
e
i
na
hi
g
hl
y
f
ragmente
d
mar
k
etp
l
ace, w
hi
c
hi
nc
l
u
d
es a num
b
er o
fl
arge
i
nternat
i
ona
l
an
dd
omest
i
c
companies, as well as man
y
smaller, more re
g
ional competitors. The Compan
y
believes that it competes in thi
s
business on the basis of warehousing and transportation logistics expertise, cost and the ability to offer both asse
t
a
n
d
non-asset
b
ase
d
so
l
ut
i
ons as we
ll
as to
d
es
i
gn an
d
manage a customer’s ent
i
re supp
l
yc
h
a
i
n
.
E
mp
l
oyees
At Februar
y
24, 2007, the Compan
y
had approximatel
y
191,400 emplo
y
ees. Approximatel
y
117,000 emplo
y
ees
a
re covered by collective bargaining agreements. During fiscal 2007, 33 collective bargaining agreement
s
covering approximately 25,500 employees were re-negotiated. During fiscal 2007, 25 collective bargaining
ag
reements coverin
g
approximatel
y
1,600 emplo
y
ees expired without their terms bein
g
re-ne
g
otiated.
Negotiations are expected to continue with the bargaining units representing the employees subject to those
a
greements. During fiscal 2008,
6
9 collective bargaining agreements covering approximately 43,200 employee
s
will expire, includin
g
an a
g
reement concernin
g
approximatel
y
23,700 emplo
y
ees in Southern California. With
this level of negotiations, the Company will be focused on ensuring competitive cost structures in each market
w
hil
e meet
i
ng
i
ts emp
l
oyees’ nee
d
s
f
or goo
d
wages an
d
a
ff
or
d
a
bl
e
h
ea
l
t
h
care. T
h
e Company
b
e
li
eves t
h
at
i
t
h
a
s
g
enerall
yg
ood relations with its emplo
y
ees.
7