Foundation under construction

KTM bankruptcy: 750 redundancies in Upper Austria fixed

KTM's warehouses are full and there is talk of up to 130,000 motorcycles not being delivered.(Bild: Markus Wenzel)

The full extent of the KTM bankruptcy is not yet foreseeable, but politicians, the Chamber of Commerce, AMS and the Chamber of Labor are already expecting at least 750 redundancies. Suppliers are also already investigating how they can reduce the number of employees. 

Markus Achleitner (ÖVP), the provincial councillor for economic affairs, hosted a round table on Thursday, which was attended by the heads of the Chamber of Labor, AMS and the Chamber of Commerce. They discussed the consequences of the KTM bankruptcy, and in particular Achleitner, AK President Andreas Stangl, WK President Doris Hummer and AMS Head Iris Schmidt negotiated how the affected employees could be helped.

"It is important that restructuring succeeds"
As reported, 250 men and women have been made redundant in a first tranche. But it will not stop there. Achleitner confirms that the insolvency application mentions a further 500 workers and employees to be made redundant. Achleitner told "Krone" on Thursday afternoon: "KTM is a leading company for Upper Austria and it is therefore important that we do everything we can to ensure that this company continues to exist and that a restructuring succeeds. Many people have a part to play in this, not least the owner," said the Provincial Councillor, referring to the role of Stefan Pierer: There is a direct exchange with him, but Achleitner did not want to say what the owner is talking about with politicians. 

Informed today at lunchtime in Linz about what happens next: WK President Doris Hummer, Provincial Councillor Markus Achleitner, AK President Anderas Stangl and AMS Upper Austria boss Iris Schmidt (from left).(Bild: Robert Loy)

20,000 vacancies in Upper Austria, 3000 in the Innviertel region
The AMS is now responsible for the affected employees. "There are a total of 3,000 vacancies in the Innviertel region and 20,000 throughout Upper Austria. We are confident that there are solutions for those affected," says AMS boss Iris Schmidt. The places for qualification measures - paid for by the state and the federal government - will be increased from 2000 to 3000 in a first step. A foundation with 300 places will also be set up. This will be financed 50 percent by the state and 50 percent by the AMS.

Achleitner is assuming around 10,000 euros per person - i.e. a total of 3 million euros. "Entry will be possible from January at the latest," says AMS boss Schmidt. Those affected may be in the foundation for up to four years. However, it is not only available to KTM, but to all companies throughout Upper Austria across all industries.

Salaries have not yet been transferred
The employees' accounts had not yet received any money by midday yesterday. "We don't know when people will get their money," says Chamber of Labor President Andreas Stangl. At the moment, politicians and representatives of the AMS, AK and Chamber of Commerce are on site at the KTM locations to inform those affected about the situation.