(Reuters circulated the following article by Susan Cornwell on February 16.)
WASHINGTON — The AFL-CIO labor group is “deeply disturbed” by calls from some senators and business interests to reopen parts of a plan to create an asbestos compensation fund, the organization’s legislative director William Samuel wrote in a letter released on Wednesday.
“We are … deeply disturbed by the statements of some senators and some business and insurance groups calling for reopening agreements reached in the last Congress …” the letter from Samuel to all 100 U.S. senators said.
Under a proposal by Sen. Arlen Specter, a Pennsylvania Republican, asbestos claims would be taken out of the courts and paid from a $140 billion privately financed fund instead. Some Republican senators have criticized aspects of the draft, including an idea, agreed in the last Congress, that claimants could return to court if the fund ran out of money.
Samuel’s letter said Specter’s latest draft “includes important provisions strongly supported by the AFL-CIO,” but there were important issues remaining to be addressed.
“The AFL-CIO will strongly oppose any attempt to push through, on a partisan basis, legislation whose main purpose is to bail out companies at the expense of victims,” Samuel said.
Asbestos was used widely for fireproofing and insulation until the 1970s. Scientists say its inhaled fibers are linked to cancer and other diseases. Hundreds of thousands of injury claims have been filed in U.S. courts, and dozens of companies, such as Federal-Mogul Corp. and chemical company W.R. Grace & Co., have filed for bankruptcy protection as a result.
The AFL-CIO said it likes Specter’s proposal to bar insurers, such as workers’ compensation insurers, from placing liens on asbestos trust fund awards to prevent double payments.
But it wants to improve some of the fund’s award levels and make sure there is enough start-up money for the fund, which is to be financed by business and insurers. The labor group said more work also is needed on a provision that appears to limit the legal rights of people with diseases caused by other airborne minerals.
Republicans and business interests have criticized several aspects of Specter’s draft bill, including that it might allow some claimants to be compensated twice.
Some companies, such as auto parts maker Federal-Mogul, have complained that payments companies would have to make to the fund would exceed asbestos-related costs they now face.
Some senators say they are trying to forge a bipartisan compromise.
Lawmakers have been working on resolving asbestos litigation for several years. Samuel’s letter said labor would continue to work toward fair legislation but warned against a retread of old proposals that failed to advance earlier. They were favored by Republicans but had little Democratic support.
Specter’s latest proposal, meanwhile, has not been embraced publicly by either Republicans or Democrats.