Auto Workers Union Backs U.S. Asbestos Fund Plan

Reuters is reporting that the Auto Workers Union is backing a proposal for an asbestos fund:

WASHINGTON (Reuters) - A plan to create a $140 billion asbestos compensation fund picked up an important labor endorsement on Wednesday from the United Auto Workers, one of the largest labor unions in North America.

The UAW’s legislative director Alan Reuther sent a letter to all U.S. senators in support of the asbestos trust fund plan that is circulating as draft legislation on Capitol Hill.

“We believe it will provide more equitable, timely and certain compensation to the victims of asbestos-related diseases,” said a copy of the letter obtained by Reuters.

The current proposal is a bipartisan compromise agreed to by Pennsylvania Republican Sen. Arlen Specter (news, bio, voting record), who chairs the Senate Judiciary Committee, and Vermont Democrat Sen. Patrick Leahy (news, bio, voting record), the ranking Democrat on the panel.

Fibers of asbestos, which was used in building materials, auto parts and other products for decades, have been linked to cancer and other diseases. Injury claims have forced many companies into bankruptcy.

Oh, and how will this be financed, you might ask?

The compensation fund would be financed by companies facing asbestos lawsuits and their insurers, while ending the rights of victims to sue. The highest individual award, $1.1 million, would go to victims of mesothelioma, a lethal cancer.