Industry Backs Asbestos Fund

An industry coalition voiced strong support last week for revised legislation that would take asbestos injury claims out of the court system and compensate victims from a $140 billion, privately financed, no-fault trust fund.

"The trust fund will ensure fair, fast, and certain compensation to victims. It will also boost our economy," National Association of Manufacturers President John Engler told the Senate Judiciary Committee at a June 7 hearing.

The Senate blocked action on the bill, S. 3274, in February when supporters failed by one vote to muster the support of the 60 senators needed to override an objection that the measure would violate the Budget Act by adding to the federal deficit.

In an attempt to gain the support of fiscal conservatives, Judiciary Committee Chairman Arlen Specter (R-Pa.) proposed a modified version designed to clarify that the trust fund will not increase the deficit or create any taxpayer obligation. "If this amended bill is rejected, I do not see the committee revisiting this issue," Specter warned. "Let me make clear that this is the last, best chance."

The legislation would end asbestos litigation that has already forced almost 80 companies into bankruptcy. Companies facing asbestos-related lawsuits and the companies' insurers would finance the trust fund over a 30-year period. Engler, who testified on behalf of the industry umbrella group, the Asbestos Alliance, said the bill would give companies certainty about their financial obligations and prevent future asbestos bankruptcies.

But opponents doubted there would be enough money in the fund to pay all future asbestos injury claims. "The bill before us still contains serious flaws, which make it both unfair and unworkable," said Sen. Edward M. Kennedy (D-Mass.). "It does not provide a reliable guarantee of just compensation to the enormous number of workers who are suffering from asbestos-induced disease."