Unions and lawyers in the US have dismissed a $114bn fund to compensate victims of asbestos poisoning as inadequate, revealed a report.
The fund had been agreed between US asbestos companies and insurers in an attempt to halt the rush of asbestos lawsuits, which is already said to have forced some US companies into bankruptcy. It was negotiated by US Senator Bill Frist.
According to the report, union leaders said the fund was a "major step backwards" as it was too small to compensate all current and future victims. Jonathan Hiatt, of the AFL-CIO union federation said: "We'll keep an open mind but it's extremely unlikely that anything will be worked out."
Were the unions and lawyers to accept the fund, they would have to agree to stop suing asbestos manufacturers and insurers. Lawyers for asbestos victims want an amendment that would allow new compensation cases to be heard if the fund ran out of money.
It is estimated that 400,000 people in the US are still seeking damages for asbestos exposure, some of who are not yet ill. Insurers have complained that some of those claiming compensation are ill from smoking and not asbestos, said the report.
