Western Australia Spends $180 Million to Settle Indigenous Workers’ Historic ‘Stolen Wages’

A group of Indigenous people sit at the front of one of the houses in a community in Pia Wadjarri, Australia, on Oct. 4, 2023. (Tamati Smith/Getty Images)

Western Australia (WA) will spend $180 million (US$116 million) to pay back the stolen wages of Indigenous people working for the state government between 1936 and 1972.

The WA government recently announced that it had reached a settlement agreement with Aboriginal and Torres Strait Islander people who were forced to work with little or no wages under decades-old policies.

This follows a class action in 2020 that seeks to reclaim up to $400 million in “stolen wages” for tens of thousands of Indigenous workers.

If the Federal Court approves the settlement scheme, each eligible Indigenous worker could be compensated a sum of $16,500.

The maximum amount of compensation will be $165 million. However, the state government will only pay this amount if there are 10,000 or more eligible claimants.

In addition, the WA government will set aside $15.4 million to help applicants fund their legal costs.

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It is worth noting that the final compensation amount that each affected Indigenous worker receives will be determined by the Federal Court and dependent on the number of eligible claimants and other deductions to be approved by the court.

Government’s Response

WA Premier Roger Cook said he was glad to reach an agreement with the Indigenous workers.

“It is an important development in recognising the past injustices inflicted on Aboriginal and Torres Strait Islander people,” he said in a statement.

“We hope this agreement can contribute to healing for those impacted.”

WA Aboriginal Affairs Minister Tony Buti said the settlement was a recognition of the past governments’ wrongdoings.

“Throughout the process, the WA Government has worked with the applicants to resolve the proceeding in a respectful and cooperative way,” he said.

“This settlement is also an opportunity to acknowledge the valuable contributions that Aboriginal and Torres Strait Islander people have made to our State, both past and present.”

An Australian Aborigine sits beside railway lines in Kalgoorlie, Western Australia, on June 16, 1964. (Daily Express/Pictorial Parade/Archive Photos/Getty Images)

Meanwhile, Vicky Antzoulatos, the joint head of class actions at Shine Lawyers, said the settlement was a victory for the Indigenous workers her firm represented.

“Workers and their descendants suffered inter-generational disadvantage because of the legislation in place in the State of Western Australia over many decades, which directly affected the lives and livelihoods of Aboriginal people,” she said.

“Financial compensation is one way to acknowledge the suffering of First Nations people. It doesn’t correct the past but offers a way forward.”

Who Is Eligible for The Compensation?

To be eligible for the compensation, applicants need to be an Aboriginal or Torres Strait Islander who were forced to work in Western Australia between 1936 and 1972 while receiving little or no wages.

In the case that the affected worker is dead, their spouse or children can claim the compensation on their behalf.

Nevertheless, claimants will be required to provide information about their identification and employment history.

The WA government’s settlement comes four years after the Queensland government took a similar approach.

In 2019, the Queensland government paid $190 million to settle the wage withholding of 10,000 Indigenous workers between 1939 to 1972.

It was estimated that Queensland withheld around $500 million from Indigenous people during the period.