$202m settlement secured in NT stolen wages class action

The Commonwealth and thousands of Aboriginal and Torres Strait Islander peoples who worked in the Northern Territory and who were paid little or no wages from 1933 to 1971 have reached a settlement for over $200 million.

Subject to approval from the Federal Court, the matter of Minnie McDonald v Commonwealth of Australia has been settled, which was brought on behalf of many thousands of Aboriginal and Torres Strait Islander peoples who worked in the Northern Territory and who were paid little or no wages, from 1933 to 1971, while they were subject to Commonwealth wage control legislation.

The proceedings were launched in 2021 by Minnie McDonald on behalf of workers and surviving relatives, with the action being brought by national plaintiff firm Shine Lawyers and funded by Litigation Lending Services (LLS).

As part of the settlement, the Commonwealth will pay up to $202 million to eligible Aboriginal and Torres Strait Islander workers or their surviving spouses and children, including up to $15 million towards the legal costs of bringing the claim and up to $7 million for the costs of the administering the settlement, and associated costs.

Shine Lawyers class actions practice leader Sarah Thomson said: “Today is a step forward for the many thousands of Aboriginal and Torres Strait Islander people we represent across the Northern Territory. This settlement cannot correct the past, but it acknowledges the suffering of these workers and their descendants, who have experienced disadvantage because of the Commonwealth legislation in place over many decades which controlled their wages.

“We are grateful to the lead applicant, Minnie McDonald, and the witnesses who had the courage to share their stories with the court during the evidence preservation hearings throughout the Northern Territory last year. It is our hope that a greater understanding of the experiences of Aboriginal and Torres Strait Islander peoples in the Northern Territory during the Stolen Wages era is a legacy of this class action.

“We acknowledge the Commonwealth government’s efforts in seeking to right a historical wrong and work towards reconciliation with the Northern Territory’s Aboriginal and Torres Strait Islander population through this settlement.”

LSS chairman Shaun Bonétt said: “This landmark resolution stands as a testament to the power of justice and the resilience of the human spirit.

“It represents more than just compensation; it is a crucial step towards healing and reconciliation for the First Nations people of the Northern Territory. Importantly, it underscores the essential role of litigation funding in enabling access to justice for those who might otherwise be silenced, and it reinforces LLS’ commitment to supporting the pursuit of fairness and accountability in all corners of our democratic society.”

McDonald said: “It was hard when we were growing up. We lived in the bush and didn’t have any school. When I was young, I started working on stations. I was working with my family – my father, my mother and my brothers were on the station.

“I later met my husband when working on stations. We had nothing and had to live on bush tucker and a bit of bread. A lot of those people we worked with are gone now. This is about all the people who were working everywhere and never got paid nothing.”

A registration process for group members and outreach program throughout the Northern Territory, Shine noted, will likely commence in October of this year, subject to the court’s orders. The settlement approval hearing will also likely take place towards the end of the year.