Big US companies support Senate asbestos fund plan
April 18, 2005 13:45:35 (ET)
By Susan Cornwell
WASHINGTON, April 18 (Reuters) - A group of large U.S. corporations facing asbestos lawsuits expressed support on Monday for a Senate plan to pay asbestos claims from a $140 billion privately-financed fund.
The statement from the Asbestos Study Group, a coalition which has been pushing for a legislative solution to the asbestos litigation problem for three years, indicated it might quibble about the details, but basically thought the draft legislation was headed in the right direction.
"We believe it brings us considerably closer to a long-overdue resolution," the group, representing companies with more than 1.5 million workers, said in a statement.
"While our analysis of the new draft is continuing, we look forward to working with the (Senate Judiciary Committee) Chairman (Arlen Specter) and other Senators to obtain final passage of this critically important legislation as soon as possible," the statement said.
Last week, another business group, the National Association of Manufacturers, also said it was encouraged by the Senate plan, although it stopped short of a flat-out endorsement.
The Asbestos Study Group represents companies not historically associated with asbestos manufacture or production but who have been drawn into asbestos litigation in other ways, such as through acquisitions, or because the material was used in parts that went into some of their products.
Members include General Electric Co. (GE,Trade), General Motors (GM,Trade), Honeywell International Inc. (HON,Trade) and Viacom Inc. ((VIAb.N)).
Fibers of asbestos, which was used in building materials, auto parts and other products for decades, have been linked to cancer and other disease. Injury claims have forced many companies into bankruptcy.
The proposed fund would be financed by companies facing asbestos lawsuits and their insurers. Victims would no longer be able to sue, but would have to go to the fund.
Agreement was reached on the proposal last week by Specter, a Pennsylvania Republican, and Vermont Sen. Patrick Leahy, the ranking Democrat on the Judiciary Committee.
But some Republicans want to make refinements to the plan before it is introduced as legislation, and Senate aides said Specter was making the rounds to colleagues on Monday to discuss the bill.
Specter has said there will be another meeting on Tuesday among Republicans to discuss strategy on the proposal.
Pressure for change was coming from other quarters as well. The AFL-CIO labor organization said last week the draft had "serious deficiencies" that must be corrected, and an asbestos victims' group said the proposed awards were too low.
Specter defended the plan on Monday against criticism from another source, former House Republican leader Dick Armey.
"Contrary to Mr. Armey's suggestion, there is no realistic alternative," Specter said in a letter to the Wall Street Journal, where Armey's criticism was published last week.
Armey had argued for legislation establishing strict medical criteria for bringing asbestos claims in court. |
