The situation in Mattighofen is not getting any brighter for the employees, as KTM completely shut down production at the end of the day last Friday and sent the staff home on unpaid leave. The company faces an enormous financial challenge.
KTM AG and two other subsidiaries of the Pierer Mobility Group have often been in the news since they filed for reorganization proceedings. After earlier news about additional rounds of layoffs, last Friday was literally Friday the 13th for production employees, because production was completely shut down at the end of the day.
Austrian reports now indicate that the wages KTM promised to pay in December will not be paid until 2025. KTM employees will not be paid in December, according to reports from the Austrian Chamber of Labor.
The Austrian manufacturer had promised its employees a 90 percent advance on wages in December, but has now gone back on that promise. It is reported that the payment of salaries and wages for December will not take place until 2025, under the responsibility of the bankruptcy compensation fund.
“Before Christmas, KTM wanted to transfer an advance of 90 percent of wages and salaries for December to employees,” read a statement from the Austrian Chamber of Labor. “This was promised to the employees. However, nothing will come of that now! The insolvent company from Mattighofen is apparently unable to carry out the promised transfers.”
“Now the November wages and the Christmas bonus have not been paid. And now, just before Christmas, this news! A handshake has no meaning anymore with KTM management. We as the Chamber of Labor will do absolutely everything we can to ensure that employees receive their outstanding claims through the bankruptcy compensation fund as quickly as possible.”
“The fact that, contrary to company promises, outstanding wages and salaries will not be paid before Christmas is like a slap in the face to those affected.
They are now paying the bill for apparently wrong management decisions. It will certainly be necessary to investigate in detail how such a dramatic situation could have arisen and who is responsible for it.
We will now do everything we can to ensure that employees quickly receive their claims from the insolvency fund and we will support them through these difficult days and weeks.”
After the interruption of production, the assembly lines will restart on Monday, March 3. That’s the current plan. That is, if they survived the crisis in Mattighofen and Pierer saved his brainchild from destruction.
– Thanks for information from Motorfreaks.