Unions and asbestos victims have warned James Hardie shareholders to accept an agreement to provide compensation for victims or face litigation.
The embattled building products company has signed an agreement detailing the way it will compensate its victims of asbestos for at least 40 years, the company said.
Under the agreement James Hardie will make annual payments to a special purpose fund, capped at 35 per cent of its free cash flow.
Initially the fund will receive three years worth of funding. There will also be a two-year funding buffer to be maintained by annual contributions.
Following the agreement the NSW government called for all bans and boycotts of James Hardie products to be lifted.
The agreement is not legally binding.
Funding will start to flow from James Hardie in mid 2005, the NSW government said.
ACTU secretary Greg Combet said the agreement would be forced on shareholders if they failed to vote in favour of it.
"There is no way that Australian people facing asbestos diseases are going to be left out," Combet said.
"If they don't do it voluntarily ... then it's going to be imposed on them."
He said the union movement would not allow James Hardie to back out of the deal.
"We're not going to let these people get away.
"They will pay, they will meet the commitments they are making in this agreement and there will be no ifs or buts about it."
Combet hailed the deal as "an important win for the Australian people and in particular asbestos victims".
He urged boycotts against the company be lifted.
"We do not want to see any further harmful action taken against James Hardie or adverse criticism made of the company," he said.
Acting NSW Premier Andrew Refshauge said the agreement would pave the way for a legally binding agreement.
"This agreement is about providing justice and certainty to the families and the victims of asbestos related diseases," Refshauge said.
