Christmas Wage Woe for KTM Employees
Reports from Austria suggest that some KTM employees may not be receiving their wages in time for Christmas, as was previously promised
The tale of trouble for Austria’s most famous motorcycle maker continues, as multiple reports suggest that December’s wages, and some Christmas bonuses, will not be paid prior to Christmas, as was previously promised by bosses.
The reports come from a number of sources, most notably the Austrian titles, Kronen Zeitung (KZ) and Vienna Online. Both are pointing to KTM staff not receiving their Christmas wages and bonuses in a timely manner before the big day. Its not clear if this is the case globally, though, or just affecting those who work directly at the Mattighofen factory - either way, the timing isn't great.
It’s being suggested that any payments will be made to staff at the end of the month, as is usually the case for workers within the KTM group. This news is on top of reports that November’s wages and Christmas bonuses had already gone unpaid.
The news of the U-turn has attracted the ire of Mattighofen's mayor Daniel Lang, and Wolfgang Gerstmayer, the Managing Director of the GPA trade union in Austria. Speaking about the news, KZ reports that Gerstmayer was ‘audibly annoyed’ at the move from PMG boss Stefan Pierer. “He [Pierer] still wanted to appear as a great saviour to his own employees by paying out December salaries, although he had already been unable to pay out November and Christmas bonuses, for which the insolvency compensation fund now has to step in. The uncertainty that the employees are experiencing is catastrophic” Gerstmayer said.
It’s now thought that the insolvency fund will have to step up to help cover any shortfall owed to staff, something that the GPA and Pro-GE Trade Unions are looking to help facilitate. A joint statement from the two bodies reads:
“The employees are now paying the price for obviously wrong management decisions. It will certainly be necessary to examine how such a dramatic situation could have happened and who is responsible for it. We will now do everything we can to ensure that the employees quickly receive what they claim from the insolvency fund, and we will support them during these difficult days and weeks.”
KTM has a history that stretches back more than 90 years, making it one of Europe's oldest automotive companies. Recent years have seen the Austrian brand grow into a global player in the motorcycle and power sports sectors. Recent high-profile acquisitions, such as that of MV Agusta, have pushed KTM and the Pierer Mobility Group into the headlines, although more recently the news has shifted to financial troubles and self-administration. We just seriously hope the brand can turn things around, both to save the historic brand and to look after the workers further down the chain who helped to get it to where it is.
Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
