Fed: James Hardie, unions to strike compo deal: report

AAP General News (Australia)
12-18-2004
Fed: James Hardie, unions to strike compo deal: report

MELBOURNE, Dec 19 AAP - Unions and James Hardie Industries could reach a landmark compensation
deal before Christmas for workers contaminated by asbestos.

Melbourne's The Sunday Age newspaper reported today it believes James Hardie Industries
was close to an agreement with the ACTU and unions for compensation worth several billion
dollars over 50 years after months of negotiations.

The compensation would cater for James Hardie's share of the 30,000 Australian victims
who are likely to suffer mesothelioma, asbestos-related lung cancers and other fatal illnesses
as a result of exposure to asbestos dust, the newspaper said.

James Hardie's liability was estimated at $1.5 billion today, but would be significantly
more over the next 50 years, the newspaper said.

James Hardie would make a yearly contribution to the expected cost of claims for the
following year, a figure set by an actuary, or a set percentage of the company's cash
flow, with a $200 million sum provided straight up to prevent future shortfalls in the
fund.

AAP jrd/rs

KEYWORD: JAMES HARDIE

2004 AAP Information Services Pty Limited (AAP) or its Licensors.