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Issue No. 221 21 May 2004  
E D I T O R I A L

Wage Fixing
The Premier’s attempt to cajole the NSW Industrial Relations Commission - and his subsequent eleventh hour bid to reopen wage negotiations - is about a lot more than the teachers' pay claim.

F E A T U R E S

Interview: Machine Man
It’s regarded as the most powerful job in the Party, but new NSW ALP general secretary Mark Arbib wants to build a bridge with the union movement.

Unions: Testing Times
Unions are not opposed to drug and alcohol testing, but they do want to see real safety issues addressed, writes Phil Doyle.

Bad Boss: Freespirit Haunts Internet
FreeSpirit forked out a motza for a whiz bang internet presence then disappeared right off the radar – once it was nominated as our Bad Boss for May.

Unions: Badge of Honour
Surry Hills is home to one of the world’s finest displays of union badges thanks to Bill "The Bear" Pirie and a supporting cast headed by Joe Strummer, Mark Knopfler, George Benson, Annie Lennox and other seriously big noises.

National Focus: Noel's World
Shrill bosses bleat over minimum wage rise, union spinmeisters congregate in Melbourne and Tassie’s nurses take the baton from their mob in Victoria reports Noel Hester in this national round up.

Economics: Safe Refuge
A humanitarian approach to refugees and an economically rational one?? I’d like to see that. Frank Stilwell did, when he went to Young in NSW to look into the impact of the Afghan refugees on temporary protection visas who came to work for the local abattoir

International: Global Abuse
Amnesty International have joined the chorus against the violation of trade union rights in the former Soviet republic of Belarus.

History: The Honeypot
To the Honeypot come those individuals anxious to get their hands on instant wealth. So it was in the early days of Broken Hill, wrties Grace Hawes in this homage to the mining town.

Review: Death And The Barbarians
This new take on coming of age films focuses on the coming of death and the dignity and maturity it can inspire among those touched by it - though not always easily in the overcrowded Canadian public health system, writes Tara de Boehmler.

Poetry: Who Wants to be a Millionaire?
Resident Bard David Peetz uncovers some of the unfolding mysteries of talk back radio.

N E W S

 Chalkies Draw Line In Sand

 Porkies Leave Shearers In Tents

 Dust Flies In Asbestos Blue

 Joel’s Law One Step Closer

 BHP In Hedland Horror

 Occupation Focuses Anglo Minds

 STOP PRESS - Mitsubishi Carves Up SA

 Ties That Bind

 Fair Play At The Olympics

 Rally Demands Boss’ Head

 Nurses Stake Aged Claim

 Labor To Roll Up Sleeves

 Feds Take Axe To Safety

 AWU Remembers 9-11 Victim

 Activists What’s On!

C O L U M N S

The Soapbox
Rethinking Left and Right Part 1
Dr David McKnight, from the University of Technology, Sydney presents a new frame for looking at the competing ideas within Social Democracy.

The Soapbox
Rethinking Left and Right Part 2
David McKnight concludes the paper he presented to the ‘Rethinking Social Democracy’ conference, in London, April 15-17, 2004.

Sport
Out On A Limb
Phil Doyle becomes the first Australian journalist to state that the Olympics will be called off.

Politics
The Westie Wing
In the latest episode, Ian West explores what Disraeli called "Lies, damn lies and statistics".

Postcard
Message from America
Searing snapshots from a landscape of uncertainty have plunged the Bush Administration into deeper crisis, writes WorkingForChange's Bill Berkowitz.

L E T T E R S
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News

Dust Flies In Asbestos Blue


James Hardie defended a scheme to hive-off asbestos liabilities with a press release senior advisers knew was inaccurate, an Inquiry has heard.

The building materials giant has taken repeated hits during the Jackson Inquiry, established by the NSW Government after unions refused to drop criticisms of its corporate restructure.

AMWU secretary, Paul Bastian, has told anyone prepared to listen the company engaged in "corporate bastardry" when it restructured in 2001, leaving massive asbestos compensation liabilities on the books of new entity, MRCF, and trading its Australian identify for a new corporate home in the Netherlands.

Bastian put that line to senior Carr Government ministers, including the Premier, John Della Bosca and Bob Debus. Other unions who blew the whistle on the restructure included the MUA and CFMEU.

James Hardie listed Bastian and the AMWU as "major risks" to its strategy in an analysis prepared for executives, the Inquiry learned.

Few others took much notice, however, until the Australian Financial Review began shedding light on the restructure.

The bottom-line of those articles, which unions and asbestos sufferers groups had been hammering since 2001, was that the $293 million tipped into MRCF would go nowhere near meeting liabilities to sufferers of asbestosis, and mesothelioma, or their families.

Back in 2001, the AMWU claimed James Hardie would fall $1 billion short of meeting its share of the national compensation bill. Hardie-created MRCF now concedes that figure has reached $800 million - and the parent company has refused to bail it out.

It was that core issue that brought admissions James Hardie had misled the public in defending its restructure.

Company legal adviser, Wayne Attrill, told the Jackson Inquiry senior executives knew a press release that said MRCF would be adequately funded was dodgy.

Attrill said he had been seen actuarial advice received prior to the restructure.

Under cross examination from union lawyer Jack Rush, Attrill said, he had raised his concerns with James Hardie's corporate affairs chief, James Baxter, since headed-hunted by Rupert Murdoch's News Ltd.

"I think I'd seen a draft press release and this press release said in very categoric terms that there would be enough funds to meet all claims. I just didn't think that that could possibly be said in such categoric terms and I expressed those views to corporate affairs," Attrill said.

Rush: "What did he (Baxter) say?"

"He said, "oh no, we're comfortable with that statement," Attrill testified.

Lawyers for unions, asbestos sufferers and the Medical Research and Compensation Foundation (MRCF) alleged James Hardie had misled the public, and the NSW Government.

They claimed it had kept information from incoming directors of MRCF and state government, fearing the latter would stop the restructure going ahead.

The Inquiry also heard from a former James Hardie safety officer, Peter Russell, who said he had quit because the company tried to "cover its backside" by refusing to put warnings on products it knew were dangerous.

Emails, from as early as December 2000, between Attrill and David Minty, partner in actuarial firm, Trowbridge, suggested James Hardie should have been aware it was underfunding MRCF.

One headed "Not good news Part lV" alerted Attrill to the fact Trowbridge had posted "gory numbers" about asbestos disease rates on its website - "you should be sitting down and probably heavily sedated before reading it," Minty's email suggested.

Attrill forwarded the warning to the company's legal chief Peter Shafron who, by return email, told him the big boss, Peter McDonald had "hit the roof - wondering how it was that our retained experts could publish something that implicates us so directly without prior notice."

Commissioner David Jackson, QC, last week warned that he expected allegations of "illegalities" to be put before him in final submissions.

Bastian pledged, whether Government or corporate watchdogs moved against James Hardie or not, the AMWU would stay on its case.

"James Hardie needs to know the AMWU will not allow it to walk away from its responsibilities to people dying from these diseases, nor the people they leave behind," Bastian said. "We will pursue Peter McDonald and everyone else involved in this to the ends of the earth, if needs be.

"We have always said they performed this restructure to sanitise their name and to quarantine themselves from responsibilities to lung diseases sufferers."


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