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12 February, 2007
Justice was finally delivered last week for Australians after shareholders of building materials company James Hardie on 7 February voted by over 99% to fund a A$4 billion asbestos compensation fund. The vote, and the 9 February transfer by the company of the first A$184 million into the Asbestos Injuries Compensation Fund, is the final victory in a six-year fight that will assure victims of asbestos are adequately compensated.
The James Hardie asbestos saga has become one of Australia’s greatest corporate fights, with trade unions, victim rights’ groups, and the state government of New South Wales taking on an arrogant company. In 2001, James Hardie announced plans to shift its headquarters from Sydney to The Netherlands in a move designed to avoid its legal obligations to thousands of people diagnosed with asbestos-related diseases. In 2003, it made the move.
That was after James Hardie CEO Peter Macdonald created an underfunded Medical Research and Compensation Fund, and declared to investors, “There will be no future provisions required,” adding that future liability will not impact company profits. In 2004, with revelations of deceptive stock market practices, including misleading investors, Macdonald departed the company.
This came as part of a comprehensive campaign by Australian labour unions, particularly AMWU and CFMEU, organisations such as Australia’s Asbestos Diseases Association, and hundreds of other civil society groups. The coalition staged shareholder protests, launched a global boycott on James Hardie’s products, and brought such intense public pressure to the company, that it was forced to acquiesce to a fair settlement.
The settlement, A$4 billion into the fund over 40 years, was negotiated with James Hardie by Australia’s trade unions, the asbestos victims’ groups, and the government of New South Wales, which did exemplary work to bring the case to a successful close.
"The pressure of unions, along with the NSW Government and the tireless work of the victim support groups and the community has been crucial to the success of this campaign,” said Australian Council of Trade Unions (ACTU) Secretary Greg Combet.