ii
Towards the end of 1989, the Central Employees Council agreed in principle to a
proposal to decentralize administration of certain fringe benefit programs as of January 1,
1990. The managements of the operating companies agreed to grant the employees'
councils an advisory role with respect to the decentralized rules.
In 1989, Ahold reduced the age of early retirement from 62 to 60 years. However, in
order to prevent an excessive increase in early retirement payments, various age brack
ets have been classified under new benefit percentages: the higher the age, the higher
the benefit.
Partly prompted by the reduced number of young people in the labor market, the
new rules represent an effort to stem the trend in Holland towards ever earlier retire
ment. As of January 1, 1989, participants in the pension plan are paying a lower
contribution. 0
As of 1990, an experimental program allows unmarried participants in the Ahold
pension plan to take out a partner pension.
Cooperation at the European level and adjustments in Ahold's strategic reorientation
will challenge the know-how and expertise of middle and top management. Ahold is
anticipating these challenges with specially targeted training programs and with refine
ments in recruitment and advancement.
A growing body of management trainees strengthens our confidence in Ahold's
ongoing ability to meet the need for high-quality executive talent.
As in previous years, a considerable sum, over Dfl 19 million, was spent on training
and educating our employees.
Acknowledging the contributions of former Ahold president A. Heijn, the Corporate
Executive Board in 1989 created a fellowship foundation to send US and Dutch
employee family members to Cornell University in the United States, a school famous
for its retailing courses. At Mr. Heijn's behest, the foundation was named after his
brother Gerritjan who died in 1987, so as to perpetuate his memory at Ahold.
I he formation of the Gerritjan Heijn Fellowship foundation is a further step in
Ahold's efforts to encourage advanced academic research and instruction in the field of
retailing. Earlier, to commemorate its centennial, Ahold created the Albert Heijn Chair
of Retailing at the Netherlands School of Business, Nijenrode. In 1965, it has established
the Albert Heijn Scholarship in honor of the 100th anniversary of the birth of Albert
Heijn, the Company's founder.
In the short term, Ahold's social policy will be only slightly affected by the integration of
Euiope. With new European legislation and directives, it will be increasingly important
to develop social policies and activities with a European perspective.
The average number of employees in the United States rose from 35,665 to 38,379.
Expressed in full-time equivalents, their number rose by 5.5% to 27,026. This increase
was due to BI-LO s acquisition of 21 stores, the opening of new stores and the expansion
of existing ones.
In 1989, Ahold USA developed plans for a more integrated approach to training and
career development for employees in the three chains. At the central level, a new pro
gram has been developed to identify and train employees with management potential.
At BI-LO, the average number of employees rose by 1,112 to 14,718, or expressed in full-
time equivalents by 0.4% to 10,425.
BI-LO introduced new training programs to increase productivity and promote
employee loyalty This commitment to extensive in-house training programs in 1989
resulted in many internal promotions.
At First National Supermarkets, the average number of employees rose by 580 to 15,793.
The number of full-time equivalents increased by 6.6% to 11,682.
The labor market in FNS s eastern operating area continued to be highly competitive
in 1989, making it an ongoing challenge to maintain an adequate pool of employees.
In the year under review, FNS entered into three new labor contracts for distribution
center employees. The contract for distribution center employees in the Eastern Divi
sion was ratified after a ten day strike.
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