WA government to pay $180m to settle stolen wages case

The WA government has reached a $180m settlement to compensate Indigenous people who worked under laws that allowed employers to withhold up to 75 per cent of their wages.

WA Premier Roger Cook. Picture: NCA NewsWire / Kelly Barnes

The West Australian government has reached a $180m settlement to compensate Aboriginal and Torres Strait Islander people who worked under laws that allowed employers to withhold up to 75 per cent of their wages.

The Cook Labor government intends to put aside $16,500 for each person or their surviving relatives.

The WA case was led by former Kimberley stockman Mervyn Street, who was 72 last year when he told the Federal Court that he worked from a young age for no money on Louisa Downs Station where his family lived in the 1950s and ‘60s. He said his father worked for rations.

The settlement was reached during scheduled mediation and remains subject to court approval. It recognises the government policies and controls in place during this period. The laws that allowed employers to garnish Indigenous people’s wages were in place in WA from 1936 to 1972.

The case was funded by Litigation Lending Services, run by Indigenous entrepreneur Warren Mundine. Mr Mundine argues the policies of garnishing and withholding Indigenous peoples’ wages led to generations of disadvantage because stockmen, domestic staff and labourers were unable to save money, buy a house and leave something to their children. The policy deprived families of building generational wealth.

The WA government will pay up to $165m into an administered fund. This maximum total figure would only be paid if there are 10,000 or more eligible claimants. Another $15.4m is for legal costs. The workers and their relatives were represented by Shine Lawyers, the firm that secured a $190m settlement over stolen wages in Queensland.

The sum to be distributed to each eligible claimant will be determined by the Federal Court.

“The WA government has been committed to resolving this matter in the spirit of reconciliation and I am glad we have been able to now reach a settlement,” WA Premier Roger Cook said.

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

Litigation Lending Services chairman Shaun Bonett said: “A fair day’s work for a fair day’s pay is at the heart of who we are as a decent society, yet thousands of WA’s Indigenous workers have historically been denied this and did not receive their wages.”

“Today’s settlement is a historic day in the fight against this injustice,” Mr Bonett said.

“We thank and commend lead applicant Mervyn Street and Indigenous group members who stood up to fight for those affected. Thank you to Premier Roger Cook, Minister for Aboriginal Affairs Tony Buti and the WA government for their leadership in resolving this matter, and to our legal counsel and partners Shine.”

“We trust this settlement provides some comfort to group members who did not receive their wages and to the families of workers that are now deceased.”