Not enough money to transfer the advance on December salaries – KTM’s message leaves employees with a very tight budget and disappointment. “It’s devastating,” says Daniel Lang. Mattighofen’s mayor about the psychological burden on those affected, the austerity measures in the city and his belief that things will remain that way.
Employees were informed on Thursday about the liquidity shortage, which made it impossible to transfer the advance on December salaries. On Friday morning, the news spread like wildfire and also reached Mattighofen’s mayor Daniel Lang, who spoke of “devastating” news.
The situation in the municipality in the Innviertel, where KTM has its headquarters and also the museum called KTM-Motohall, is shaped by the impressions of recent weeks. “There is currently no Christmas party, no annual general meeting, no club and no other point of social life where KTM is not an issue,” says the 35-year-old.
Immediately after the declaration of bankruptcy, 250 employees heard of their dismissal. Lang knows the fate of these employees: “In November they received 300 euros for one day and their share of the Christmas bonus. They basically have nothing left before Christmas.”
Uncertainty “is the bad thing”
The fact that another 500 jobs will be lost in January, but it is not clear who will be affected, fuels the uncertainty. “That’s the bad thing. They are now being sent on Christmas vacation and don’t know if they will still have a job in January.”
The psychological burden on the affected employees and their family members is enormous: “It is important to address this and listen to how they are feeling now.”
The renovation of the outdoor swimming pool and the state music school has been suspended
The budget meeting took place in the Mattighofen municipal council on Thursday – here too the consequences of the bankruptcy of the leading company were felt. The planned renovation of the outdoor swimming pool has been postponed, as has that of the state music school. However, the development of the fourth well to provide Mattighofen with drinking water continues: “We will not stop that, we need it.”
Sick rumor mill
How does he assess the bubbling rumor mill and the fear that the engine manufacturer’s restructuring will collapse? “I truly believe that the KTM business will continue, in some form or another. That remains to be seen. But everyone is convinced that it will continue.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
