At KTM AG, more measures are being taken to ensure the company’s survival; Solidarity is being demanded from around 3,700 workers currently at Europe’s largest motorcycle manufacturer.
At Pierer Mobility AG, based in Wels, the so-called European adjustment mechanism was introduced in Austria for the first time at the beginning of the week. Claimants must present their claims and management close to boss Stefan Pierer must present concrete restructuring plans and make them credible.
At KTM AG, a subsidiary of Pierer Mobility AG, it is still about small profits: Around 3,700 employees at Europe’s largest motorcycle manufacturer now have to show solidarity and give up part of their salaries. According to the Upper Austria Trade Union, wages and salaries for November and December as well as the upcoming Christmas bonuses will be withheld.
This is a protective measure: If the restructuring process of the group is successful, the insolvency fund will pay the withheld funds.
Around 700 jobs had to be cut in 2024. Recently it was announced: In another step, 300 employees will be laid off. The number of employees was also reduced by early retirement and lack of new positions. Production stops in January and February. Part of the workforce will receive a guarantee of reinstatement when production at KTM resumes from March 1, 2025 after a two-month break.
According to his own statements, Stefan Pierer wants to fight hard for his life’s work, KTM. With the turmoil at KTM, things could also be important for regional suppliers. According to the employment service, the industrially strong district of Braunau is currently suffering the effects of the recession. Unemployment figures have risen above average in recent months. The political representatives of the state of Upper Austria now claim that if KTM needs public support as part of the rescue, state participation or state shares must be considered.
