Amicus-AEEU

Amicus-AEEU

October 26, 2006 08:01 ET

Amicus welcomes government decision on Turner & Newell asbestos victims

LONDON, UNITED KINGDOM--(CCNMatthews - Oct. 26, 2006) - Amicus, the UK's largest private sector union, has welcomed the government's announcement that it will not be reclaiming money paid in compensation to UK asbestos victims.

The decision follows a concerted campaign by Amicus on behalf of its members following the Turner and Newell (T&N) administration process. Because of this money was with held due to negotiations with T&N's owners Federal Mogul and Kroll the administrators. The deal struck will pay a dividend in compensation to UK asbestos victims from US owner Federal Mogul, which will come from the approximately GBP101million that this deal will yield.

Under UK law the Government has the right to reclaim part of a victims compensation paid out through suffering from asbestos related disease and could claim back the first five years of any state benefit a victim has claimed. However the UK government has decided not to refer the Turner and Newell pay outs to the Compensation Reclaim Unit.

Amicus' General Secretary, Derek Simpson, said

"We are delighted with this outcome which Amicus has worked hard to achieve.

"It is a victory for common sense. People who are suffering and the families of people who have died from this awful disease deserve to have peace of mind that they will not lose a huge amount of their compensation payments to the Government."

This is excellent news for hundreds of immediate sufferers of asbestos who will see the effects of this announcement straight away. Also long term the benefit of this will cover thousands of people who have or will suffer from asbestos related illness.

Amicus have campaigned hard with Terry Rooney MP to bring about this issue.

- Ends -

Note to editors -

1) T&N went in to administration 3 years ago when Federal Mogul acquired the company. US lawyers filed law suits on behalf of asbestos victims in the US totalling $11billion, a figure proved to be outrageously high by the UK administrators. This event saw the US arm flee to chapter 11 and the UK assets go in to administration in order to protect the assets from creditors.

2) A culmination of three years work by Amicus has seen the T&N pension fund safe guarded by the pension protection fund. The deal now, also gets money to our members and other UK victims of asbestos related diseases. Without this work we would have faced a quite different situation, with both the pension fund getting little or nothing from the deal and the UK asbestos victims receiving very little or nothing from the deal.

Contact Information

  • Amicus
    Brian Gallagher
    0207 420 8900 or 07957 995 947
    or
    Amicus
    Catherine Bithell
    0207 420 8909