Hardie and ACTU close to settling asbestos claim

SYDNEY - James Hardie Industries and the ACTU are close to agreeing on a financial settlement for compensation for future victims of asbestos disease.

The parties had agreed on the structure of a deal, set to be the largest financial settlement in Australian history, after major concessions in their critical negotiations, The Australian newspaper reported today.

Under the deal, James Hardie would meet up to $A2 billion in asbestos disease claims over 50 years or more, the paper said.

ACTU secretary Greg Combet had also agreed to the principle of a cap on how much of Hardie's annual cash flow would go towards meeting claims over the next 50 years.

And the company was willing to accept a "substantial and meaningful" cap on annual payments.

Hardie was prepared to put as much as $A200 million into a "buffer fund" to ensure there would be money to meet claims for up to three years, even if Hardie made no profit during that period.

However, ACTU was seeking more, the newspaper said.

Some of the buffer could be met by the existing fund, the Medical Research and Compensation Foundation.

The ACTU and Hardie have had a rocky road in negotiating a deal to compensate the victims of Hardie's asbestos products.

As late as yesterday, unions and victims labelled as "offensive rubbish" a statement from Hardie suggesting negotiations had stalled because of the conduct of the ACTU.

- AAP