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Issue No. 250 21 December 2004  

Beyond The Law
Despite the all-engulfing gloom emenating from our political wing right now, 2004 comes to an end on a strangely upbeat note for the trade union movement.


Interview: The King of Comedy
John Robertson looks back on a year when his comic genius was finally realised.

Unions: Ten Simple Rules
Accepted wisdom has unions all but retired as serious players in the Australian game. A glance through the major industrial stories of 2004, however, suggests improved footwork, and a commitment to boxing clever, might herald a comeback, writes Jim Marr.

Politics: Rampant Indivdualism
CFMEU National Secretary John Sutton gives his take on a year when the political debate took a turn to the Right.

International: Global Struggle
Labourstart's Eric Lee looks back on a year when the struggles for labour increasingly crossed international lines.

Economics: Cashing in the Year
Look back in sorrow or look back in anger? By any standards 2004 has been a hell of a year, writes Frank Stilwell.

History: Grass Roots
Worker solidarity in Australia in the first century of invasion can give us inspiration and clues for our upcoming battles, writes Neale Towart.

Review: Cultural Realities
In 2004 popular culture shifted from reality television to reality movies, and swapped last year's light-weight subject matter for the slightly more substantial, writes Tara de Boehmler.

Poetry: Y-U-C-K
Workers Online resident bard David Peetz takes inspiration from The Village People for his latest prose.


 Unions Make Hardie Pay

 Hadgkiss Gives Mourners Grief

 Mum Gets "Hopson’s" Choice

 AWAs Crash on Broken Hill

 No Fun in the Sack

 Tax Office Draws Blood

 Origin Prop a Union Hit

 Good Guy Wears Black

 Security Crisis at Sydney Airport

 Biscuit Bosses Crumble

 Ardmona Urged to Can Racism

 Bomber Predicts Big Bang

 Stolen Wages Cut

 Tomorrow the World…

 Bosses Sack WorkCover

 Activists What's On!


The Crystal Ball
Workers Online consults a raft of leading psychics to find out what readers can look forward to in 2005.

The Soapbox
Scrooge Was Right
Christmas has been cancelled this year, writes our US correspondent Brooklyn Phil.

The Locker Room
The Workers Online Sports Awards
Continuing a tradition that dates back to the Twentieth Century, Phil Doyle dishes out the gongs for all things great and small in the world of sport during 2004.

The Westie Wing
Our favoutrite MP looks for a positive spin on the year at NSW Parliament

 Costa’s Hike Unfare
 Temporary Arrangements
 The Price Of Tea In China
 Cry For Me, Argentina
 Ho Bloody Ho
 Right Is Wrong
 Business As Usual
 All In The Family
 Swing Left Wishful Thinking
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Unions Make Hardie Pay

Unions are on the brink of forcing James Hardie to become the first multi-national in Australian history to hand over billions of dollars on moral rather than legal grounds.

Their campaign - rallying workers, asbestos victims, councils, state governments and plaintiff lawyers - saw the building materials giant agree, this week, to open-ended funding of Australian asbestos compensation claims for at least 50 years.

The heads of agreement sets out the mechanics of how claims will be funded, starting with an upfront $250 million "cash buffer", and commits the parties to completing, and implementing, a legally-binding document by June.

Signatories to the heads of agreement are JHINV, the ACTU, Unions NSW, Bernie Banton representing victims, and the NSW Government.

The signing marked a stunning about-face from a company that, earlier this year, was telling victims it had no legal or moral obligations to them.

The man who made that statement, CEO Peter Macdonald, was replaced after a commission of inquiry found evidence he had broken laws in reconstituting the company outside Australian legal jurisdiction.

"We have a commitment by the Dutch-registered company to fund compensation claims for personal injury victims in Australia," ACTU secretary, Greg Combet, announced.

"It is an open-ended commitment and that is significant because nobody knows how many victims of James Hardie products there will eventually be.

"It's a fantastic result from a strong union campaign and a great outcome for the Australian community."

Combet has been lead negotiator over a wearying period that has seen JHINV slowly shift ground in response to community pressure.

Initially, it insisted on a statutory scheme that would have restricted victims' rights and compensation payments. By last month, it was still holding out for conditionality and substantial discounts.

The circuit breaker appears to have been state government agreement to hold an inquiry into how administrative and legal costs can be limited within the compensation process.

Combet said the heads of agreement dealt with the core concerns of victims and unions - open-ended funding to compensate current and future victims; protection of victims rights in the compensation process; and maintaining the commercial viability of the JHINV Group so it can deliver.

He said this was no time to traverse the rights and wrongs of Hardie's behaviour in the lead-up.

"We have said plenty about James Hardie and it's all on the record. Now it's time to move on," Combet said. "This is a significant step in undoing any wrong they might have done.

"The whole thing depends on the viability of James Hardie into the future and that's something we are aware of."

The agreement vindicates a number of people who were on Hardie's case years before it became a cause celebre, most notably the AMWU's Paul Bastian and former MUA official, Barry Robson.

Bastian's union drove the story into the public domain where it was picked up by the CFMEU and co-ordinated by Unions NSW.

It wasn't until businessmen in charge of James Hardie's original trust fund confirmed Bastian's core accusation they been left grossly-underfunded that NSW Premier Bob Carr put in place the inquiry that blew the lid off the corporate shenanigans.

The net present value of JHINV's funding commitment, according to financial modelling, is $1.9 billion. Actuaries KPMG estimate the present value of its asbestos liabilities at $1.5 billion.

Key elements of this week's heads of agreement include

- an open-ended funding commitment

- a buffer payment of three years, upfront, estimated at $250 million

- establishment of a special purpose fund to hold the buffer, receive JHINV payments, manage claims and pay victims

- JHINV will top the fund up yearly, based on annual actuarial assessments of its liability

- Those payments will be capped at 35 percent of free cash flow, with any shortfalls to be made up from the buffer or previous contributions. In the first year that cap will be around $70 million but it is expected to top $140 million by 2014

- There will be a minimum annual payment, set at 10 percent of free cash flow

- From 2012, there will be flexibility to enable the cap to move down, and back up, with reference to actual claims experienced and the percentage of cash flow being drawn

- The minimum term of the funding arrangement is 40 years. Then, by mutual agreement, outstanding liabilities maybe covered off by a lump sum payment. If there is no agreement at that time, between JHINV and the NSW Government, the term shall extend for another 10 years, with provision for indefinite extension if no termination agreement can be reached

- Various releases from civil liabilities for the company, its directors and officers, have been agreed

- JHINV will fund an asbestos awareness program and contribute to medical research

- The binding principal agreement will contain remedies in the event of JHINV defaulting on its obligations. It will also deal with the position of asbestos compensation liabilities in the event of insolvency

To become legally enforceable, the agreement must be endorsed by James Hardie shareholders.


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