Japan Sets Up New Asbestos Fund

September 1, 2006 - In a move that sets Japan apart from so many countries who are still trying to figure out how to deal with the growing problem of asbestos-related diseases, Japan has ordered companies found responsible for causing asbestos-related illnesses to contribute to an annual fund for victims of mesothelioma.

The Environment Ministry has announced that they will demand a combined 340 million yen (about $3 million USD) annual payment from four asbestos-related companies that have met certain criteria.  That criterion includes having a higher death rate from mesothelioma in their local area compared with the national average, having used over 10,000 tons of asbestos in the past, and having recorded at least 10 workplace cases of lung cancer or mesothelioma caused by asbestos. 

Among the four firms that have been targeted are two Japanese companies that have a long record of asbestos poisoning among employees – Kubota Corporation and Nichias Corporation.

The Mainichi Daily News reports that another 2.63 million firms will be required to pay a total annual amount of about 7 billion yen (about $59 million total).  The companies' payments will form part of the 76 billion yen ($650 million) in relief to be provided to victims under the new law.

Under this new Japanese law, regular firms will be required to pay amounts based on a system for collection of worker's compensation insurance. For example, large companies with about 60,000 employees will be required to pay about 30 million yen a year, those with about 300 employees will have to pay about 80,000 yen a year, and small- and medium-sized firms with about 10 employees will be required to pay about 3,000 yen a year, according to the Daily News article.

Under the law, the payments are referred to as “relief” rather than “compensation” and the Japanese government claims they have focused on spreading the cost over a large number of companies, rather than having a small number of firms contribute huge amounts.