The industrially strong Braunau district is particularly struggling with the effects of the recession. Unemployment has risen above average in recent months. KTM also recently announced that it would cut 300 jobs. 700 jobs have already been cut this year. According to a KTM spokesman, around 3,670 employees are affected by the bankruptcy.
The situation in Braunau is tense
The managing director of the AMS Upper Austria, Iris Schmidt, told ORF Upper Austria: “This is worrying for us. However, we have been seeing this for the last few months, and now the peak is coming, which will subsequently affect us as AMS.” The situation in the Braunau district is tense. “Subsequently, it will of course affect the supplier companies, and retailers will also be affected, as will an electrician, for example. “Everyone who has previously been very focused on this large company,” says Schmidt.
Achleitner trusts in successful renovation
“KTM is an important leading company in Upper Austria. We trust that Stefan Pierer and his team will carry out a successful renovation. There is close coordination between the AMS, social partners and the state of Upper Austria so that all steps are taken to support the employees,” emphasizes State Councilor for Economic Affairs Markus Achleitner (ÖVP).
SPÖ: Consider participation
SPÖ-OÖ regional manager Florian Koppler called on KTM boss Stefan Pierer to clarify how he wants to protect KTM employees despite the current bankruptcy. If, after the state was liable for millions in 2009, public money would again be necessary to save the company, it would be better to consider state or federal government participation. “It cannot be the case that Mr. Pierer benefits from state support when business is going badly, but in good times presents himself as a private entrepreneur who collects the profits alone,” criticizes the SPÖ state manager.
NEOS: Reform backlog as a threat to business location
“If even a globally renowned company like KTM, which stands for innovation and export strength, gets into such massive difficulties, it is an alarm signal for the entire Austrian economy,” emphasized NEOS country spokesman Felix Eypeltauer. “The backlog of reforms in Austria is increasingly becoming a threat to our economic location.” Courageous reforms and decisive reductions in bureaucracy are now needed to finally ignite the turbo. NEOS MP Markus Hofer sees “a significant and sustainable reduction in non-wage labor costs” as “essential in order to make Austria future-proof and competitive again as a business location”.
FPÖ sees the federal government as the culprit
The FPÖ sees the federal government as the culprit in the KTM bankruptcy. “The Nehammer-ÖVP managed to run the location down and leave a budget disaster behind. This is now followed by recession, unemployment and the massive loss of competitiveness. “What’s to come before we return to reality?” said Upper Austria’s deputy governor Manfred Haimbuchner. “There must be a turnaround in economic policy and not the Marxist Babler as the decision-maker in the federal government after the eco-communist Gewessler,” demanded the economic spokesman for the FPÖ Lower Austria, Michael Sommer.
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