The The Australian Manufacturing Workers’ Union (AMWU) is asking the Rudd government to step in and guarantee funding to cover a $350 million shortfall in the James Hardie asbestos compensation fund.
The appeal comes after an admission that the James Hardie asbestos compensation fund will not meet payment targets over the next three to five years because inadequate provisions in the original allocation.
Victims groups and unions want the Rudd government to step in and seek reimbursement from James Hardie at a future date.
The proposal would assign victims’ compensation rights to the federal government, allowing it to legally recover the money from James Hardie.
Victims groups are also appealing for special assistance from the NSW government which was instrumental in setting up the fund by passing special legislation three years ago.
AMWU NSW secretary Paul Bastian is writing to the Prime Minister seeking the assistance and asking that he keep his word that “no one would go without compensation”.
Mr Bastian said victims groups accepted the economic downturn worldwide had eroded profits for James Hardie, particularly in its US building products division.
“It is important that James Hardie stay afloat so it can continue to make payments to the fund in the future. I think the state government should be our white knight,” Mr Bastian said.
Mr Rudd campaigned on the welfare of James Hardie asbestos victims before the 2007 federal election and mentioned campaign icon Bernie Banton in his election speech.
Mr Bastian also said $153 million in James Hardie funds held by the tax office could be released to make the payments.
