Hardie Stockholders to Vote on Asbestos Fund Contribution

February 1, 2007 - According to an article in the Sydney Morning Herald, James Hardie Corporation expects to deposit $184 million into a new asbestos compensation fund on February 14, five working days after a shareholder vote next week that they hope will be a positive one.

Meredith Hellicar, James Hardie chairperson, believes the vote will proceed as planned because "we have had very strong endorsement from the majority of shareholders".

The votes will be cast on Wednesday, February 7th, says Hellicar.  The initial amount of money deposited into the fund will cover about 2 years of claims.  An additional $1.3 billion is to follow. 

The newspaper account notes that this deposit will bring to an end “a six-year struggle for compensation” for Australians who became ill from exposure to Hardie asbestos products.

The company first set up a trust fund in 2001, but it was told that the money in that particular fund would run out decades before all claims were paid.  It wasn’t until 2004 that James Hardie agreed to initiate a larger fund, due in large to pressure from the general public and families of those stricken with asbestos-caused diseases. It took 2 years to decide how the fund would be structured.

Ms Hellicar told shareholders that all directors "firmly believed" the new plan should proceed, because it would be “good for shareholders, employees and management as well as the recipients of compensation.”

The secretary of the Australian Council of Trade Unions, Greg Combet, warned shareholders that if funding for the sick and dying was not forthcoming, "we will be tireless in running this company down".

Shareholders were confronted head-on with a look at the effects asbestos may have on an individual. Greg Hayes, a plumber who’s a victim of mesothelioma caused by Hardie products, appeared before those assembled at a meeting. Doctors told him “it won’t be long,” he told the crowd from his wheelchair.  "Today I would like the opportunity to say good-bye to everybody. Thank you so much."