Reports from the Upper Austrian Chamber of Labour have revealed troubling news for employees of the renowned Austrian motorcycle manufacturer, KTM. Despite initial promises from the company, KTM workers will not be paid in December as expected. In fact, the company, facing severe financial difficulties, has backtracked on its commitment to advance 90 percent of December wages, instead pushing the responsibility for paying salaries into 2025, under the insolvency compensation fund.
KTM, based in Mattighofen, had originally promised its employees a 90 percent advance on their December wages, a gesture aimed at helping workers through the holiday season. However, this promise has now been rescinded. According to a statement from the Upper Austrian Chamber of Labour, the company is currently unable to process the promised payments due to its insolvency.
“Before Christmas, KTM wanted to transfer a 90 percent advance of December wages and salaries to the employees,” said the Chamber’s statement. “This had been assured to the employees. However, nothing will come of it now. The insolvent company from Mattighofen is apparently unable to carry out the promised transfers.”
The situation has become even more dire for KTM employees, as wages for November, as well as the Christmas bonus, have also not been paid. The employees now face a bleak holiday season, with no financial relief in sight. The president of the Upper Austrian Chamber of Labour, Andreas Stangl, expressed his frustration with KTM’s management, saying, “Now the November wages and salaries as well as the Christmas bonus have not been paid. And now, shortly before Christmas, this news! There is simply no more handshake quality in the management of KTM.”
The Chamber of Labour has pledged to support the employees in this difficult time. Stangl assured that they would do everything in their power to ensure that the workers receive their outstanding pay through the insolvency remuneration fund as quickly as possible.
The situation has also been strongly condemned by the PRO-GE and GPA unions, which represent the affected workers. The chairpersons of the unions, Reinhold Binder and Barbara Tieber, released a joint statement expressing their disappointment at KTM’s failure to meet its financial commitments to its employees.
“The fact that, contrary to the company’s promises, the outstanding wages and salaries will not be paid out before Christmas is like a slap in the face of those affected,” the statement reads. “They are now paying the bill for apparently misguided management decisions.”
The unions further emphasized that the workers’ financial struggles were a direct consequence of poor management decisions, and they promised to investigate how the situation had spiraled into such a crisis. Binder and Tieber vowed to do everything in their power to ensure the workers are compensated through the insolvency remuneration fund.
“We will now do everything we can to ensure that employees quickly receive their claims from the insolvency remuneration fund and will accompany them through these difficult days and weeks,” the statement continued. “The example of the KTM insolvency shows once again how important this fund, which is financed from the so-called non-wage labour costs, is for affected employees.”
As the situation unfolds, KTM’s workers are left in limbo, waiting for clarity on when they will finally receive the wages they are owed. This crisis highlights the broader financial troubles facing the company and serves as a stark reminder of the importance of financial stability and accountability in businesses, especially when it comes to safeguarding the rights and livelihoods of employees.
