KTM in self-administration: Hope for employees after bankruptcy!

KTM in self-administration: Hope for employees after bankruptcy!

On December 20, 2024, there were significant developments in the corporate landscape and public services in Austria. Following the insolvency of the motorcycle manufacturer KTM, the company can temporarily continue to be run under self-administration until February 2025. Romana Deckenbacher, the FCG federal chairwoman and ÖGB vice-president, described this decision as an “important signal of confidence”. She emphasized that securing jobs and the employees' labor rights rights was now the top priority. In view of the announced staff cuts, rapid action is necessary to protect the future of the employees. Effective measures such as an insolvency foundation must be put in place to provide support in this difficult situation ots.at reported.

Salary adjustments in the public sector

In addition to the situation at KTM, Deckenbacher also provided positive news in the public service: a salary increase of 3.5 percent was successfully negotiated. This adjustment recognizes the commitment and importance of employees in this important area, she explained. In addition, a further adjustment has already been agreed for 2026, which provides for an additional surcharge of 0.3 percent in addition to the calculated inflation. Deckenbacher noted that the public service is an indispensable pillar of society and, especially in challenging times, requires the reliability and commitment of colleagues in order to ensure the functioning of the state. The approximately 130,000 employees in the social economy can also look forward to a salary increase of four percent, which will come into force on January 1, 2025. These developments were discussed in an article fcg.at presented in detail.