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All four employment agencies owned by the Austrian temporary staffing agency Connect have filed for bankruptcy, the Viennese journal Wiener Zeitung reports today.
The company leaves behind a debt mountain of 14 million Euros and 780 personnel.
Management has blamed the current economic crisis and its implications for the labour market for what was effectively a massive and fast loss of income. Initial measures to reduce the number of employees were not able to counteract market conditions.
Management efforts to find an industry buyer for the failing agency group were equally unsuccessful.
According to the Economics official of the regional government of Upper Austria, Viktor Sigl, the federal state is working on a support plan for the employees of Connect. The aim is to encourage alternative regional temporary staffing agencies and other local businesses to take on ex-Connect employees. The German car manufacturer BMW has already expressed an interest in taking on some of the former agency staff at his local plant in Steyr.