The Guardian July 21, 2004


Hardie's "disgusting" plan

The corporation responsible for the deaths from asbestos-
related diseases of many thousands of its workers has pitched a 
plan to the NSW Government that would allow it to avoid paying 
compensation. James Hardie Industries has already skipped the 
country, leaving behind a cash-strapped compensation fund. Now it 
wants a statutory scheme that would limit the rights of the 
victims of its deadly asbestos products.

Hardie wants to bypass the court system, effectively taking away 
the right of asbestos victims to common law to sue the company. 
Asbestos sufferer and Secretary of the Asbestos Victims' 
Association of SA, Terry Miller, called the company's plan 
"disgusting".

"What I think they are trying to do is strip away the legal 
rights of victims", said Mr Miller. "I think they should stand by 
what they said initially — that they fully fund the foundation 
[set up by Hardie] to cover all victims for as long as it takes".

The sheer greed behind the company move includes an attempt to 
stop the case from harming Hardie shares, which one share dealer 
described as "outstanding stock".

Under the proposal Hardie shareholders — which include the likes 
of NAB and AMP — would provide an additional lousy $500-600 
million to the fund and the Carr Government would introduce 
legislation to prevent any legal action by victims.

The union movement has been on Hardie's hammer in pursuit of the 
workers' rightful compensation. Paul Bastian, Secretary of the 
Australian Manufacturing Workers' Union, pointed the finger at 
the Carr Government for not ensuring there were adequate funds 
made available.

"We made our position pretty clear then [in 2001] that there 
would be a shortfall of between $800 million and $1 billion."

At that time Hardie had already put its plan in place to skip the 
country, close down its headquarters in Australia and set up 
house in the Netherlands.

In a statement the Australian Council of Trade Unions (ACTU) 
called Hardie's move "the meanest act in corporate history" 
pointing out that an estimated 60,000 Australians will ultimately 
die as a result of exposure to work-related asbestos.

"That's the number of Australians who died in World War One", 
said the peak union body's Assistant Secretary, Richard Marles. 
"The notion that we should limit access to proper compensation 
for the death of so many people is a disgrace."

The ACTU called on Hardie to repatriate all of the money it has 
taken out of Australia and face up to its responsibilities to 
fully compensate asbestos victims.

Unions will have to fight hard to get any justice from the state 
Labor Government, which has carried out a vendetta on behalf of 
employers against the rights of injured workers, including taking 
away their right to sue negligent employers.

The Hardie case saw the involvement of former federal Labor 
minister Stephen Loosley, now a "business lobbyist". The whole 
process was put into gear by a consultancy engaged by Hardie 
which just happened to be operated by two of Premier Carr's ex-
staffers.

Through these connections Loosley arranged meetings in 2001 
between Hardie executives and Carr's chief of staff, Graeme 
Wedderburn. These gatherings also included Mathew Strassberg, 
chief of staff to Special Minister for State, John Della Bosca, 
the architect of the attack on the state's workers' compensation 
system.

In February of that year Della Bosca stated: "The foundation's 
capacity to fund claims will be tested vigorously by this 
government".

Loosley was paid a "completion fee" of $25,000 by Hardie for 
ensuring that the Carr Government did not put any "legislative 
impediment" in the way of its setting up its totally inadequate 
fund.

On Monday this week, the ACTU called for the Federal Government 
to take steps towards a treaty with the Netherlands where the 
James Hardie company is now based so that asbestos victims can 
pursue their rights to full compensation.

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