Trembling after bankruptcy

KTM

More than 3600 people are employed by the three companies that slipped into insolvency.

(Bild: Wenzel Markus)

Day three after the opening of insolvency proceedings at motorcycle manufacturer KTM was dominated by the first works meetings for the affected employees. "The mood is depressing," says Mario Moser-Luger from the GPA trade union. Nevertheless, the company wants to avoid hardship cases in the upcoming layoffs and take into consideration families and couples where everyone works for the company.

Even before the insolvency proceedings were opened at three companies of motorcycle manufacturer KTM, the first companies had already contacted the creditor protection associations to find out about the procedure for filing their claims. The first employees of the Mattighofen-based company who had questions also contacted the Upper Austrian Chamber of Labor last week.

More than 3600 employees are affected by the company's restructuring process: they are waiting for their November salaries and Christmas bonuses and are to receive a 90 percent advance on their December salaries this week, which KTM will transfer, as the company announced.

Clearing up uncertainties, clarifying formalities
Between Monday and Wednesday, a total of 12 works meetings will be held in Mattighofen, Munderfing and Schalchen, at which the insolvency experts from the Chamber of Labor and the restructuring administrators will inform the employees. The main aim is to clear up any ambiguities and explain the process that is now required to initiate payment by the insolvency compensation fund.

"Will it continue or not? - that's what so many people are asking," says Mario Moser-Luger from the GPA.

(Bild: Fesl Manfred)

The uncertainty is palpable among the workforce at the leading company in the Braunau region. "The mood is depressing," says Mario Moser-Luger, who accompanied the meetings at KTM Components GmbH on Monday for the GPA trade union. He was "shocked" by the many fates. The fact that a month's salary is still owed is causing distress for some. "Some are completely reliant on it and had budgeted for the money," says Moser-Luger.

Own hotline set up
"There are a lot of questions - for example, what happens next and, of course, how the insolvency payout fund works," reports Karoline Neumüller, head of the insolvency law department at the Upper Austrian Chamber of Labor. The Chamber of Labor has now even set up its own telephone hotline and special e-mail addresses to answer questions as quickly as possible.

Often several members of a family are employed by KTM or both partners of a couple - so there is naturally a great deal of uncertainty.

Mario Moser-Luger, Gewerkschaft GPA

How long will it take for the insolvency compensation fund to transfer the money that KTM owes? Patience is required here. "Ideally, we hope that the fund will be able to pay out at the end of January," says Neumüller. This is because the more than 3,600 employees have to fill out their applications, then these are sorted and the data collected, which in turn has to pass through the strict eyes of the regional court and the restructuring administrators.

First court hearing on December 20
The insolvency proceedings are being conducted as restructuring proceedings with self-administration. This means that KTM's management, primarily Stefan Pierer and Gottfried Neumeister, will continue to run the business. On December 20, the first report hearing will be held at the regional court, at which the restructuring administrators will report in detail on the developments of recent weeks.

Works Council keeps a close eye on hardship cases
The trembling for jobs among the workforce is great. Up to 500 jobs are to be lost by the end of the year, as was announced after the insolvency proceedings were opened. According to Moser-Luger, the aim is to avoid cases of particular hardship when cutting jobs: "The works council can object if, for example, both partners in a couple are at risk of losing their jobs. A similar approach is apparently also being taken with families. There are often several generations of employees at KTM.