What happens next for the 3,670 employees affected by the impending insolvency of the motorcycle manufacturer KTM and two subsidiaries? They are worried about their jobs, and from Monday there will be company meetings with experts from the Chamber of Labor.
KTM no longer pays the salaries and wages for November as well as the Christmas bonus. Until the restructuring process is opened, it is not legally possible for KTM to pay this out, says spokesman Hans Lang. There is no comment on whether this will benefit the ailing company.
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Business KTM: From bankruptcy in 1991 to bankruptcy in 2024
The insolvency remuneration fund will step in and the employees will get the money from there. According to the Chamber of Labor, the processing will take at least a month. So the Christmas bonus comes after Christmas.
Criticism of the union
Wolfgang Gerstmayr, managing director of the GPA union, emphasized on Wednesday that the fund is financed from additional wage costs and criticized: “KTM boss Stefan Pierer, of all people, has repeatedly raised the mood against additional wage costs in the past. Now the public sector should step in for his company , although serious management errors are most likely responsible for this situation.”
Things are different when it comes to December wages and salaries. KTM will pay this again – not at the end of December, but next week, i.e. in the first week of December. The aim is to “soften hardship cases,” says Lang.
From January onwards, wages and salaries should be paid as normal or to the extent of the 30 hours to which working hours are reduced (internal short-time work). As reported, up to 300 additional jobs are to be cut. What other measures are to be taken will ultimately be included in the restructuring plan, which KTM must agree on with the creditors within 90 days.
Critical voices accuse KTM of having paid out a dividend in April. It was 50 cents per share. The year before it was two euros. The payout ratio fell from around 40 to 21 percent. Lang defends the dividend: “It was paid out for the past financial year and was significantly reduced despite the record year of 2023 because it was foreseeable that 2024 would be more demanding.” However, the slump in sales of this magnitude was not to be expected.
When asked how much of the bankruptcy was due to adverse circumstances and how much was due to management errors, Lang said: “A lot has been done right in recent years, but not everything.” He points to external factors: personnel costs have increased by 125 million euros within three years. “And this for a company that has a 96 percent export quota.”
How might KTM’s restructuring plan affect employee benefits, such as pensions and healthcare?
Welcome back to the show. Today we are joined by [Guest Name], a labor relations expert, to discuss the recent financial troubles facing KTM and what this means for its employees.
[Guest Name], thanks for joining me.
KTM has filed for insolvency and with it, many employees are wondering about their future. Can you tell us a bit more about what’s happening now from an employee’s perspective?
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This must be a worrying time for KTM’s 3,670 employees. What are some of the immediate challenges they are facing?赏
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There has been much criticism regarding KTM’s payment of dividends in April, despite their financial situation. What are your thoughts on KTM’s decision to pay dividends, considering the current circumstances?
**(Guest responds to the prompt)
KTM has stated that their restructuring plan will aim to bring the company back on track. What kind of measures do you anticipate seeing in this plan, and what impact might these measures have on the employees?
**(Guest responds to the prompt)
what resources and support are available to KTM employees during this time, and where can they go for assistance?
**(Guest responds to the prompt)
That’s all the time we have today. Thank you so much for sharing your insights, [Guest Name]. This is definitely a situation we will be following closely.
