Safeway (SWY)

Employees:

At year-end 2004, Safeway had more than 191,000 full and part-time employees. Approximately 77% of Safeway’s employees in the United States and Canada are covered by collective bargaining agreements negotiated with local unions affiliated with one of 10 different international unions. There are approximately 400 such agreements, typically having 3 year terms, with some agreements having terms of up to 5 years. Accordingly, Safeway renegotiates a significant number of these agreements every year.

During 2004, UFCW collective bargaining agreements covering approximately 51,000 employees in the Company’s Vons, Eastern, Phoenix and Seattle stores were ratified. In January and February 2005, contracts in Northern California and Las Vegas covering approximately 25,000 employees were ratified.

During the balance of 2005, UFCW collective bargaining agreements covering employees in the Company’s stores in Wyoming; in-store Bakery Workers agreements in California, Seattle and Portland; and Teamsters agreements covering employees in Safeway’s distribution centers in Southern California, Denver and Seattle come up for renewal. In addition, certain collective bargaining agreements covering Denver Division store employees which expired in 2004 and Dominick’s agreements which expired in 2003 and 2004 are in the process of being renegotiated.