Fears over Hardie move

Union leaders and asbestos victims groups yesterday called on James Hardie Industries to provide immediate assurances that its plan to abandon Australia and move to the US would not adversely affect their members.

Karen Banton, widow of workers rights campaigner and asbestosis victim Bernie Banton, in Sydney.

ACTU president Sharan Burrow and Asbestos Diseases Foundation president Barry Robson said they were prepared to renew the campaign to ensure the global building materials company met its responsibilities.

The revelation that Hardie has a secret plan for a global restructure has sparked alarm that it will try to get out of its deal to compensate Australian victims as they develop asbestos diseases over the next 40 years.

Unionists also fear Hardie's strategy, called Project Red, will mean job losses among its several hundred workers in Australia.

As revealed by The Weekend Australian, under Project Red, Hardie plans to liquidate its Dutch parent, transfer assets to a new US company and international tax havens, and sell off itsAustralian and New Zealand operations, or reincorporate them as independent local companies. "These issues raise serious concerns and the ACTU can guarantee it will stand up for asbestos victims," Ms Burrow told The Australian.

"We seek an assurance from James Hardie that in the move to the US there will be no adverse impact on the asbestos compensation and also that the jobs of Hardie's workers in Australia will be preserved."

The revelations of Hardie's restructuring plan also drew warnings from Karen Banton, the widow of the public face of the six-year battle to make Hardie pay asbestos victims, Bernie Banton. "I have always said you can never trust James Hardie," Ms Banton said.

By last night Hardie had made no comment to The Australian or on its website.

Company spokesman Steve Ashe, Australia Pacific vice-president Peter Baker, chief financial officer Russell Chenu, and chief executive Louis Gries did not return calls or emails.

It is understood Hardie has threatened at least one executive against disclosing any details of Project Red.

Last year, Hardie finalised the compensation agreement with the NSW Government, estimated to be worth $4 billion, or $1.5 billion when inflation is taken into account.

But Hardie signed the deal only on the basis that it was "voluntary" and did not accept legal liability, and stated at the time that "no absolute assurance can be given that funding is sufficient".

Mr Gries once floated a plan to the Hardie board to leave Australia rather than agree to the $4billion deal. Under the deal, Hardie pays up to 30 per cent of its annual profits into a fund for future asbestos claims. Some union and asbestos support group

leaders fear that even if Hardie does not specifically renege, the restructure could reduce payments into the fund.

A spokeswoman for NSW Premier Morris Iemma yesterday said the Government "has no knowledge of this matter".

"However, the final funding agreement was drafted to last 40 years and it provides a process to manage issues such as change of country and change of parent company," she said.

"We'll look at the details of any proposal James Hardie puts forward to ensure future claimants' rights are protected."

Mr Robson said the state Government should act now, including renewing a threat to introduce legislation already drawn up to force Hardie to meet its asbestos responsibilities. "They are still doing anything to stop paying victims," he said.

Referring to the company's origins in Australia 120 years ago and its still mainly Australian shareholder base, he said Hardie was out to "destroy a fine Australian company".

Source: Ean Higgins, The Australian

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