Layoffs, wages

Neumüller

More than 3600 employees are affected by the insolvencies of the three KTM companies. They are waiting for the majority of their Christmas bonuses and their November salaries.

(Bild: Krone KREATIV/Markus Wenzel (2))

The continuation of KTM has been given the green light! Four days before Christmas, the motorcycle manufacturer, which had slipped into insolvency, scored an important stage victory at the regional court in Ried im Innkreis. It was also learned that the job cuts planned for the beginning of 2025 will be lower than planned. And that was not the only good news for the employees ...

The hearing for KTM AG at the regional court in Ried im Innkreis lasted 50 minutes on Friday morning, after which it was clear: the motorcycle manufacturer from Mattighofen (Upper Austria) can continue to operate. This is important news for the more than 3,600 employees who work at the three companies that have mutated into restructuring cases.

Fewer than 300 employees will have to leave at the beginning of 2025
At the same time as the first court hearing, news also leaked out: The job cuts planned for January will now be significantly lower than originally planned. There had been talk of 500 or even 550 employees having to go. Since Friday, however, it has been announced that fewer than 300 employees will lose their jobs in January.

250 employees were made redundant at the beginning of December
The uncertainty as to who will be affected remains as great as ever, but at least it is a first ray of hope after the last few weeks, in which the negative reports had been coming thick and fast and even the end of KTM was feared. 250 employees were given their notice a few days after the opening of insolvency proceedings. Production has been at a standstill for a week and is not due to resume until March.

The further processing and duration until payment to the employees are now no longer within our sphere of influence.

Karoline Neumüller, Leiterin der Abteilung Insolvenzrecht und Lohnsteuer in der Arbeiterkammer OÖ

Bild: AK OÖ/Wolfgang Spitzbart .

What happens next for the workforce, some of whom are in an information vacuum? While the message that the wave of redundancies will be less severe is a glimmer of hope, the transfer of the outstanding November salary and the majority of the Christmas bonus by the insolvency compensation fund is getting closer.

This is because the insolvency law department of the Upper Austrian Chamber of Labor, which received the wage data from KTM on Monday afternoon, was able to register around 3,500 employee claims with the court on Thursday afternoon and at the same time apply to IEF-Service GmbH.

Information letters were sent to employees on Friday
Now the restructuring administrators have to check these applications, then the transfers can be released. It will probably be clear to employees before Christmas how much they will receive from the insolvency compensation fund. The Chamber of Labor sent the information letters with the data to the post office on Friday.

Something should also happen soon with regard to December salaries. KTM had lacked the liquidity for the promised advance payment. Now, however, the picture has changed. However, it is not known exactly when the money will be transferred.