It was the shock in combination with the declaration of bankruptcy at motorcycle manufacturer KTM: in one fell swoop, more than 3,600 employees worried about their jobs and at the same time about their salaries and wages in November and most of their Christmas bonuses. Now the wait is over: the insolvency fund starts making payments.
After initially waiting for KTM’s wage data, the insolvency law department of the Upper Austrian Labor Chamber finally registered the employees’ claims with the court on December 19 and simultaneously filed an application with IEF-Service GmbH, which manages the insolvency fund. . Three weeks later, the final formalities were also cleared: restructuring managers Peter Vogl, Robert Tremel and Franz Mitterbauer took their exams.
This means that payments can now begin through the insolvency compensation fund to KTM employees, who will now receive their November salaries and wages, as well as most of the Christmas bonus the motorcycle manufacturer owes its staff in just a few days.
“In all likelihood, all payouts will take place around January 20,” says the management of IEF-Service GmbH in response to a “Krone” request, also revealing: “The payouts will be carried out gradually from next week.” : The first employees should be able to see a booking on their account around January 14 or 15.
AK has submitted approximately 3,500 applications with powers of attorney
How much money will flow to the workers affected by the mega-bankruptcy? We are talking about 20 million euros, which will now be transferred as part of the first payments. The insolvency law team of the Upper Austrian Labor Chamber led by Karoline Neumüller was able to submit approximately 3,500 applications to the fund on the basis of powers of attorney.
The second wave of layoffs is underway
Next week, workers will also receive their wages for the first time, namely the December wages, which must be paid in mid-January. The KTM employees were paid their December salaries at the end of December.
Since the bankruptcy, the situation has become extremely precarious for some employees, and there is also uncertainty. 250 layoffs were announced in early December and another 300 or so employees, mostly white-collar workers, will lose their jobs by January 17.
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.
