NT Stolen wages class action: Applicants could get $10k each from potential $202m fed gov payout

The Red Centre capital’s convention centre has turned into a courtroom for a day, finalising how much claimants could get in a stolen wages class action. Find out what happened.

Alice Springs Convention Centre. Picture: Gera Kazakov

The stolen wage class action – which the federal government has agreed to pay up to $202 million towards – could result in those seeking to recoup their lost or unpaid wages be eligible for as little as $10k under a proposed funding model, a court has heard.

The long running legal battle for compensation for stolen wages to Aboriginal or Torres Strait Islander Territorians has continued with a Federal Court hearing at the Alice Springs convention centre on Thursday, with the courts to decide how much the claimants will receive at a later date.

The class action was filed in 2021 by lead applicant Minnie MacDonald with Shine Lawyers, who sought compensation for herself and others for working for little or no pay between 1933 and 1971 while subject to wage control legislation.

Stolen wages class action lead applicant Minnie McDonald and Shine Lawyers associate Harry Tilse. Picture: Supplied

At the latest hearing, William Edwards, on behalf of Shine Lawyers, proposed a model on how much those registered could receive, depending on their claim.

“If you are a person who worked in the period and you’re still alive, our proposal would mean you get at least a minimum of $10,000,” he said, subject to conditions.

“Now, if you’re a person who worked in the period for a long time, by which we mean about half of the period, our proposal would be that those people get paid more in respect of their claim.

“But it’s important to remember, very sadly, a lot of the people have passed.

“And so these payments that are being made in respect of people that have passed will have to be split.”

Fiona McLeod represented the Commonwealth at the hearing and acknowledged the agreed settlement amount might not please all claimants.

“There’s no perfect solution to this and the parties are obviously doing their best to try and create a sense of fairness between the parties and wherever we land, there will be a degree of unfairness to some of the parties which reflects the commercial settlement reached between the parties in the end result,” she said.

The Commonwealth’s proposal on the amount to be paid to those seeking settlement would depend on how many registered for compensation, the court heard.

Mr Edwards said there were 800 Indigenous Territorians who registered for the class action who were alive during the eligible period, with 7519 registering for the class action so far.

Food was given out to those who attended the latest NT Stolen Wages class action high court hearing at the Alice Springs Convention Centre, November 5, 2024. Picture: Gera Kazakov

Registration for the class action closes August next year.

While the morning session was full, only one lady seeking compensation through the class action was in the gallery after the lunch adjournment.

Others choose to listen in via videolink, which also experienced a drop in numbers after the lunch adjournment.

Aboriginal and Torres Strait Islander workers born before 12 November 1961 who worked in the NT between June 1, 1933 and November 12, 1971 for little or no wages are eligible to join the class action, with an exact figure of workers yet to be determined for the class action.

Family of workers who fit the eligible criteria are also encouraged to apply, with the federal government agreeing to pay up to $202m as part of the lawsuit in September.

Of the $202m, $15m will go towards legal costs, while another $7m will go to costs towards administering the settlement.

Both Shine and the Commonwealth agreed claimants would be paid through the account of an independent administrator – likely to be Deloitte – which will distribute the funds once the amount has been reached.

The hearing was presided over by Federal Court Chief Justice Debra Mortimer.

Chief Justice Mortimer adjourned the hearing to December 17.

Originally published as NT Stolen wages class action: Applicants could get $10k each from potential $202m fed gov payout