The High Court also held Peter James Saffron liable for failing to perform his duties with diligence. Saffron is the company secretary and general counsel for the building materials company. In its actuarial report, James Hardie said that its compensation funds, which aimed to help victims of asbestos disease, were fully funded. 

James Hardie was one of the many companies in Australia that were involved in mining, manufacturing and distributing asbestos and related products. Asbestos has been found to cause many illnesses like malignant mesothelioma and asbestosis. 

In 2002, The Australian Council of Trade Unions said thousands of claims for mesothelioma were filed against James Hardie. 

That time, the company created a special foundation that would take care of its asbestos liabilities. The company told the stock exchange that the foundation had enough funds to address future claims in compensation. 

This turned out to be false, however. After just three years, the fun ran out of money, much to the dismay of the public and those affected by asbestos-related diseases. Observers stated that the foundation was lacked funding by about $1.5 billion. 

The company also packed its bags and moved to the Netherlands. This left thousands of victims without proper compensation. 

In 2007, a civil case was then filed by the Australian Securities and Investment Commission against the James Hardie directors and officers. These are former chairman Meredith Hellicar, directors Michael Gillfillan, Martin Koffel, Michael Brown, Dan O’ Brien, Peter Willcox and Greg Terry.

Reports said that the body was ready to give Williamson the boot but he decided to resign instead. Williamson’s resignation, however, doesn’t include his position as national president of Health Services Union and general secretary of HSUeast branch. 

The Unions NSW has accepted the resignation, which extended to Williamson losing his place on the superannuation fund First State Super board. 

The Unions NSW also suspended HSU from its roster. It also warned HSU that it will remain suspended if it doesn’t make changes to its financial and governance arrangements. 

The suspension reflects the decision of Australian Council of Trade Unions (ACTU) when it suspended HSU last week. 

Williamson has figured in a series of scandals on financial mismanagement and bad workplace practices. He, however, insisted that he is innocent and vows to fight those who are pushing to disgrace him. 

In another twist of Williamson’s continuing battles, documents have surfaced showing union official and former Labour government minister Peter O’ Toole’s warning to John Robertson about Williamson. O’Toole strongly encouraged Robertson to prevent Williamson from becoming the national president of ALP. 

This, however, did not materialize and Robertson has come under fire for not implementing the request. Deputy Premier Andrew Stoner said Roberston did not exercise good judgment on the issue and must have turned a blind eye despite serious allegations against Williamson. 

Prime Minister Julia Gillard has remained mum about the issue, saying only that the correct process must be observed.

HSU has figured in several controversies involving workplace breaches and financial mismanagement. The body is also facing investigation from Fair Work Australia and police probes in Victoria and NSW.

ACTU President Ged Kearney said the decision sends a strong message to HSU officials to come up with better governance procedures. Kearney added that the decision also aims to protect union members, adding that the body has zero tolerance on members getting involved in corruption issues. 

The suspension of HSU meant that it will not be represented in the executive and ACTU Congress in May this year. 

Although the decision to suspend HSU is not unanimous, ACTU secretary Jeff Lawrence said the body voted “overwhelmingly.” Unions Tasmania, HSU and small unions grouping were the ones who voted against the suspension of HSI. 

Lawrence said that the suspension does not make any suggestion of guilt. The body also recognizes HSU’s efforts to address the issues. 

He stressed that the decision is not merely a publicity stunt but a strong message to their ranks to remain faithful to their duties. 

HSU represents more than 60,000 health workers in Australia. Its membership includes community and hospital health workers. The Australian Council of Trade is the governing body that represents workers in Australia. 

ACTU said it will continue to monitor the developments of the situation. The body also said that it is open to discussing the future of HSU if the need arises.