Criticism from GPA boss

“Some insolvencies are incomprehensible”

Many well-known brands have major problems: from fashion retailer Esprit to motorcycle manufacturer KTM, which is owned by Stefan Pierer.

(Bild: Krone KREATIV/Markus Tschepp, Manfred Fesl, Philip Platzer)

18 companies a day slipped into insolvency last year - and the wave of bankruptcies that has gathered pace seems unstoppable. This development also worries trade unionist Wolfgang Gerstmayer. However, the head of GPA-OÖ also says: "Some insolvencies are incomprehensible." A conversation about profit-oriented companies, KTM, future prospects and employees as victims.

The financial turmoil at well-known brands shows no sign of abating: the packaging tape division of rope manufacturer Teufelberger is a restructuring case, motorcycle manufacturer KTM is sitting on more than two billion euros in debt and fighting for its future, jewelry retailer Goldwelt Juweliere & Uhrmacher GmbH has been facing a wave of closures since the opening of insolvency proceedings, and kika/Leiner finally came to an end on 29 January.

"This is a time of particular challenges. The stagnation and recession have now reached almost all sectors," says Wolfgang Gerstmayer, regional managing director of the GPA trade union in Upper Austria. The trade unionist spoke to the "Krone" about...

• The increasing imbalance in the economy: 
  "We notice that profits have always been made in the corporate structures and then it happens relatively quickly that - if something doesn't work in some areas - there are insolvencies, or the employees are the ones who suffer because there are wage cuts or other working time models, that some branches or some parts of the business are closed. This is of course very critical from our point of view."

Wolfgang Gerstmayer is the regional managing director of the GPA trade union.

(Bild: Wenzel Markus)

• The outlook for the future:
  "In the past in particular, we have seen that an economy - like Austria - thrives on people having a job - full-time employment, good earnings, so that you can cover inflation. Of course, this is always more difficult in such difficult economic times. But I think it's important to think about what will happen in the future and not to say now that everything is bad, which is why companies everywhere are filing for bankruptcy."

• The growing number of insolvencies:
  "Some insolvencies are not understandable from my point of view in the size or in the way they happen. It often smacks of the fact that people in corporate structures are simply looking to optimize profits and costs are then generalized, passed on to employees or pushed off with the insolvencies. I actually see that as much more critical than the economic situation."

• A change in the ability of companies to suffer: 
  "It's difficult to compare because the whole corporate culture has changed. Today, we are much more dependent on large corporations that have bought in everywhere. A carpenter who founds a joinery and then has between 30 and 50 employees certainly looks at his employees differently. And these corporations that we have, which operate internationally, subordinate everything to the euro and profit. And we are certainly seeing a change there. Social responsibility is no longer perceived in the same way."

• His thoughts on the KTM insolvency, which cost 520 jobs: 
  "I would like to see corporations like KTM definitely take responsibility too. Stefan Pierer has actually made a good living from KTM for decades, has built up a super empire - I don't envy him at all. I think he really did a great job for a while. But now you also have to take responsibility for your employees. I think we have that in small companies, but I really miss it in large corporations. The euro is the measure of all things and never the human factor - but you shouldn't forget that."

• His approach to overcoming crises:
   "I believe there is a certain social responsibility towards employees and that you also push through bad times once in a while. Then you might have to make less profit or maybe even reinvest some of what you've put aside over the years so that you can look positively to the future again. It's certainly difficult in general, but I don't think it's hopeless."