Asbestos company is forced to fund compensation shortfall
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《英国医生杂志》
Hit by a national boycott, the major Australian building products company James Hardie Industries has agreed to compensate people with diseases induced by its asbestos products by providing approximately $A1.5bn (?.6bn; $1.2bn; �0.9bn) over a period of at least 40 years.
Under a heads of agreement negotiated with the Australian Council of Trade Unions and groups representing people with asbestos related diseases James Hardie will, for each year of the term agreed, provide up to 35% of the company抯 annual cash flow from its global operations to a special purpose fund. The number of new cases of diseases relating to the widespread use of asbestos cement sheeting in existing houses are estimated to peak in 2020, but new cases may emerge for up to 70 years.
The settlement comes after an inquiry initiated by the New South Wales government into the possible bankruptcy of a fund for asbestos victims, the Medical Research and Compensation Fund, that was created by the company in 2001 (BMJ 2004;328:728). The inquiry found that James Hardie may have breached corporate laws in creating the fund but that it had no legal liability to meet the shortfall (bmj.com, 2 Oct 2004, News Extra).
In a briefing to investors on the agreement the company stated that "as a practical matter James Hardie would risk adverse legislative, regulatory and customer responses unless adequate provision is made for asbestos liabilities." The company抯 chairman, Meredith Hellicar, described the compensation fund抯 crisis as an "unintentional underfunding."
James Hardie has agreed to contribute funds until at least 2045, at which time it may, with the approval of the New South Wales government, make a final payment to meet estimated liabilities. Whether the fund continues is yet to be resolved.
However, the company has indicated that a critical factor in gaining support from its shareholders for a final agreement will be reducing legal costs associated with settling claims from the current 36% of funds to 20%. A review by the New South Wales government on opportunities for reducing costs will be finalised by March 2005.
The secretary of the Australian Council of Trade Unions, Greg Combet, said the agreement met the unions?goals of ensuring that the legal rights of victims were preserved and that neither payments to individuals nor the overall scheme were capped.
The negotiation of a legally binding agreement is expected to take until mid-2005. Bernie Banton, the vice president of the Asbestos Diseases Foundation of Australia, described the agreement as a "momentous day in the fight for victims and their families."
However, Mr Banton has warned supporters against thinking that the next round of negotiations would be easy. "Let抯 not think that the fight is over. It certainly is not," he said. After the completion of the commission of inquiry Mr Banton described James Hardie as a "resilient" opponent. "Nothing has changed, let me tell you this company has been very difficult, very difficult to deal with."(Canberra Bob Burton)
Under a heads of agreement negotiated with the Australian Council of Trade Unions and groups representing people with asbestos related diseases James Hardie will, for each year of the term agreed, provide up to 35% of the company抯 annual cash flow from its global operations to a special purpose fund. The number of new cases of diseases relating to the widespread use of asbestos cement sheeting in existing houses are estimated to peak in 2020, but new cases may emerge for up to 70 years.
The settlement comes after an inquiry initiated by the New South Wales government into the possible bankruptcy of a fund for asbestos victims, the Medical Research and Compensation Fund, that was created by the company in 2001 (BMJ 2004;328:728). The inquiry found that James Hardie may have breached corporate laws in creating the fund but that it had no legal liability to meet the shortfall (bmj.com, 2 Oct 2004, News Extra).
In a briefing to investors on the agreement the company stated that "as a practical matter James Hardie would risk adverse legislative, regulatory and customer responses unless adequate provision is made for asbestos liabilities." The company抯 chairman, Meredith Hellicar, described the compensation fund抯 crisis as an "unintentional underfunding."
James Hardie has agreed to contribute funds until at least 2045, at which time it may, with the approval of the New South Wales government, make a final payment to meet estimated liabilities. Whether the fund continues is yet to be resolved.
However, the company has indicated that a critical factor in gaining support from its shareholders for a final agreement will be reducing legal costs associated with settling claims from the current 36% of funds to 20%. A review by the New South Wales government on opportunities for reducing costs will be finalised by March 2005.
The secretary of the Australian Council of Trade Unions, Greg Combet, said the agreement met the unions?goals of ensuring that the legal rights of victims were preserved and that neither payments to individuals nor the overall scheme were capped.
The negotiation of a legally binding agreement is expected to take until mid-2005. Bernie Banton, the vice president of the Asbestos Diseases Foundation of Australia, described the agreement as a "momentous day in the fight for victims and their families."
However, Mr Banton has warned supporters against thinking that the next round of negotiations would be easy. "Let抯 not think that the fight is over. It certainly is not," he said. After the completion of the commission of inquiry Mr Banton described James Hardie as a "resilient" opponent. "Nothing has changed, let me tell you this company has been very difficult, very difficult to deal with."(Canberra Bob Burton)