Company: AKO-B
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001410578-25-000473
Chunk: 31

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-03-26
Form: 20-F
Item: Item 3
Chunk 31
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 particular benefits. While inflation has declined considerably during 2024, it remains and will continue to remain at high levels. Furthermore, labor unions frequently demand large wage increases. Furthermore, the Argentine government has instituted multiple policies aimed at reducing the adverse effects of inflation and exchange rate swings on wages. Employers in the public and private sectors are under constant pressure to raise wages due to the high rates of inflation.

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Labor relations in Argentina are governed by specific legislation, such as Labor Law No. 20,744 and Law No. 14,250 on Collective Bargaining Agreements, which, among other things, specify how salary negotiations and other labor negotiations should be conducted. The new government of President Javier Milei, through the enactment of a Decree of Necessity and Urgency (DNU-2023-70-APN-PTE, dated December 20, 2023) instituted labor reforms that, among other issues, included significant changes to the aforementioned laws. However, this decree is currently on hold due to a judicial order. Nonetheless, these laws have been amended by Law 27,742 (Bases Law) enacted on June 27, 2024 by the National Congress, by virtue of which some of the reforms provided for in the aforementioned DNU-2023-70-APN-PTE were incorporated.
Government measures to preempt or respond to social unrest may affect the Argentine economy and our business.
In recent decades, Argentina has experienced significant social and political turmoil, including civil unrest, riots, looting, nationwide protests, strikes and street demonstrations. Certain social and political tension and high levels of poverty and unemployment continue. Unions frequently stage nationwide strikes and protests, and riots and lootings of shops and supermarkets in cities around the country have taken place at times of social turmoil.
Future government policies to preempt, or in response to, social unrest may include new taxation policies and changes in laws and policies favoring foreign trade and investment. Such policies could materially affect the Argentine economy, and thereby our business, results of operations and financial condition.
Price control policies of previous governments in Argentina, if reinstated in the future, may have a material and adverse effect on our results of operations in Argentina.
In the past the Argentine government has from time to time established price controls on consumer products. President Milei’s new government has repealed price control regulations in Argentina with the aim of achieving a more transparent and free market. To the extent that the price of our products in Argentina is again restricted by the government through price