Round table fixed

Politicians after KTM bankruptcy: “Owners required”

"We were surprised by the scale of the situation," says Markus Achleitner, Regional Economic Councillor, about the insolvency of motorcycle manufacturer KTM.

(Bild: Krone KREATIV/Markus Wenzel, Daniel Scharinger)

The restructuring administrators have gained an initial overview of the situation at motorcycle manufacturer KTM, which has slipped into insolvency, and more than 3,600 employees will be informed about the next steps by Wednesday. And politicians are not remaining inactive either: A round table will be held on Thursday and initial support measures are being prepared.

On Friday, insolvency proceedings were opened for three companies of motorcycle manufacturer KTM. Insolvency experts from creditor protection associations and trade union representatives are shaking their heads at the enormous mountain of debt and wondering what has gone so wrong here.

"It's up to the owner"
"The scale surprised us all. We need to shed light on how such a robust company could slide into insolvency within just a few months," says Markus Achleitner, Upper Austria's Upper Provincial Councillor for Economic Affairs. The ÖVP politician said at a press conference on Monday with regard to the restructuring plan and the necessary financing, in which Stefan Pierer will also have to make his contribution: "The owner is called upon. The court will also examine the extent to which he has to contribute to the restructuring of the company."

The situation at KTM has an impact on suppliers. The rule of thumb is: one industrial job creates two more jobs - and unfortunately the reverse is also true.

Markus Achleitner, Oberösterreichs Wirtschaftslandesrat

40 million euros in unpaid salaries
KTM still owes its employees their December salary and Christmas bonus, which will be paid out via the insolvency compensation fund. According to Achleitner, this amount is around 40 million euros. At the works meetings that began on Monday, the main topic was the powers of attorney required to assert claims to the insolvency compensation fund.

The insolvency proceedings will result in staff reductions. The exact extent of these cuts remains to be seen. Shortly after the insolvency proceedings were opened on Friday afternoon, it was announced that 500 jobs would be cut by the end of the year. The round table initiated by the state of Upper Austria with the Public Employment Service, Chamber of Labor and Chamber of Commerce will take place on Thursday. It will not only be about KTM, but also about the suppliers. Initial measures are to be defined, including bridging finance for suppliers.

There are currently 3000 vacancies in the Innviertel region
How will the people who lose their jobs be supported? By means of the so-called job hub, a project with the AMS, employees who lose their jobs are to be matched with suitable companies straight away. There are currently 3,000 vacancies in the Innviertel region. Insolvency foundations are to be set up for those who cannot find a job straight away. However, these will probably not be launched before February.