The AMWU is seeking an urgent meeting with the NSW Premier Nathan Rees to discuss the security of compensation for James Hardie victims.
The Union’s concern follows last week’s court finding against the company’s board and recent announcements by James Hardie that the economic crisis has affected their ability to pay into the compensation fund.
Last week, Justice Ian Gzell in the NSW Supreme Court found that ten former James Hardie directors and executives broke the law by making misleading public statements about the adequacy of the trust fund to compensate people who contracted a fatal illness from contact with asbestos.
The case revolved around a media release dating back to 2001 regarding a $293 million asbestos compensation trust fund set up by James Hardie.
The media release, which was approved by the board, described the trust as "fully funded" to compensate victims. Only two years later, the trust fund announced it was facing a $800 million shortfall.
In 2004, a NSW Government inquiry found the real shortfall could be up to $2 billion.
Justice Gzell found that all 10 former directors and executives were found to have breached the Corporations Act at least once, with former chief executive Peter Macdonald found to have done so on nine occasions.
AMWU NSW Secretary Paul Bastian said he had serious concerns for future claims against the Fund set up by James Hardie to fund compensation claims.
“James Hardie has advised the State Government and the Asbestos Injuries Compensation Fund (AICF) that it will not be in a position to deposit additional funds into the Compensation Fund.
“The AICF will fall short in funding for compensation of Hardies’ victims over the next two years because of the impact on the Fund’s investments caused by the global financial downturn.”
The AMWU was not party to the November 2006 Agreement which determined Hardies’ compensation commitments.
At the time, the union did, however raise the necessity to secure funding for the AICF in circumstances where Hardies might claim financial difficulties.
“We are now extremely concerned about this situation give the findings agaisnt the ten directors.
“They made misleading and deceptive statements about the company’s ability to pay asbestos compensation to its victims. These breaches were found to be so serious that the former Board members may be fined or disqualified from holding further company positions.”
Mr Bastian said one of the issues that needs addressing is the important need for a representative of Hardie’s victims to be appointed to the board.
“Appointing a representative of victims to the Board would demonstrate a genuine recognition by Hardies of its corporate responsibility to victims and the community and allow the company to move on from its appalling history.”