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Unions disappointed by James Hardie penalties

  •  21 August 2009
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THE ACTU says unions are disappointed at the penalties and bans handed down to former James Hardie executives and directors involved in the company’s asbestos products.

Earlier in 2009, the Australian Securities and Investments Commission had brought the case against the former James Hardie directors.

The ASIC successfully argued the former directors had breached the Corporations Act by approving a 2001 media release that contained misleading and deceptive comments about the company’s ability to meet asbestos compensation liabilities.

The NSW Supreme Court this week fined former chief executive Peter Macdonald $350,000 and disqualified him from company management for 15 years.

Former chairwoman Meredith Hellicar and other non-executive directors have been fined $30,000 and disqualified for five years.

Unions claim these are not enough considering the extent of their behaviour, and the harm caused by James Hardie’s asbestos products. The financial penalties are well short of the million-plus sought by the Australian Securities and Investments Commission.

The unions claim they will pursue every legal and political avenue possible to ensure James Hardie keeps the Asbestos Injury Compensation Fund viable.

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