WASHINGTON (PAI) – Despite efforts at a compromise acceptable to unions and business, talks on legislation to settle asbestos cases collapsed on May 10. The legislation would have established a no-fault trust fund for asbestos victims.

But the talks foundered and died because the asbestos-producing firms and their insurers refused to provide enough money for the fund, AFL-CIO President John Sweeney said.

“Throughout this process, we made our position clear that legislation had to provide victims fair compensation and be adequately funded,” Sweeney said. “Unfortunately, the level of funding business and insurers were willing to support was inadequate.”

Sweeney also said the talks, sponsored by Sen. Arlen Specter (R-Pa.), produced no solution for what would happen if the asbestos fund ran out of money.

Last year, Senate Judiciary Committee Chairman Orrin Hatch (R-Utah) halted settlement talks between unions, affected businesses and their insurers over aid to the workers. He did so by telling business to pull out. Hatch then produced a pro-business bill with a smaller fund – $114 billion over 27 years – and no guarantees of future cash should that money run out.

But when Hatch and Senate Majority Leader William Frist (R-Tenn.) brought that pro-business bill to the Senate in mid-April, outraged Democrats successfully filibustered it.

The AFL-CIO has sought $154 billion for the asbestos victims. It also sought a legislative guarantee of future funding should the trust fund run out of money.

Meanwhile, Specter worked behind the scenes, aided by retired Philadelphia federal judge Edward Becker as a mediator, to try to settle the differences between the two sides.

In a mid-March report to Specter on those months of talks, Becker said many major issues were solved, but some remained. Differences remained over medical monitoring, timing of payments to victims, and the impact of smoking, among other issues.

“The final, and most difficult, issue is funding,” he admitted to Specter. “Labor claims the projected $114 billion is grossly inadequate to pay the needed compensation to injured workers.” Becker called labor’s figure too high.

Despite the breakdown in talks, both sides said they will continue to work for a compromise.