Court approves $180 million payout over stolen Aboriginal wages in Western Australia

On By Karl

The Federal Court has approved the Western Australian government’s $180 million settlement payment to eligible Aboriginal workers whose wages were withheld or underpaid due to discriminatory government policy over the last century.

We would like to remind Aboriginal and Torres Strait Islander readers that this article contains images and descriptions of deceased persons.

Judge Bernard Murphy ruled that approximately 8,750 successful plaintiffs would receive a share of the payment after lawyers and the third-party plaintiff who partially funded the case were paid.

The class action lawsuit was brought by Gooniyandi stockman and acclaimed artist Mervyn Street, 72, who worked on stations for most of his life and was not paid until he was in his 30s.

Bay Street’s complaint, prosecuted by Shine Lawyers, concerned a policy in force between 1936 and 1972 that allowed the state government to deduct up to 75 per cent of an Aboriginal person’s salary.

In November 2023, the state government announced it would pay up to $180.4 million to thousands of eligible Aboriginal workers, their spouses and children, including $15.4 million in legal fees.

Photograph of an Aboriginal man on horseback with cattle in the background.

An unknown Aboriginal stockman running cattle in the Kimberley. (Provided by: State Library of WA)

Deal approved

On Tuesday, Judge Murphy, sitting in Perth, heard submissions from Shine Lawyers and other eligible claimants, the state government and litigation funder Litigation Lending Services (LLS), which is supporting the case.

In his ruling, Judge Murphy said he was not yet prepared to give an exact amount of the monetary value each claimant would receive, but said he was “deeply saddened” by the treatment they had received.

“The proposed resolution regarding unpaid or underpaid wages and related claims must also be understood,” he said.

“This is not about the shameful treatment of First Nations people.

“While some managed to recover from the trauma, others were devastated through no fault of their own.”

Judge Murphy said it was important to approve the settlement fund as any settlement reached during litigation through the courts could take “years” and a “significant amount of time” to reach.

“I propose to ratify the agreement not because it is nice or because it is generous, but because it is the best thing that can be done under all the circumstances,” he said.

“The stories the court heard will stay with me forever, and I am deeply sorry that First Nations workers were mistreated.”

Photograph of Judge Bernard Murphy standing in front of a bookshelf.

Judge Bernard Murphy presided over the case in the Perth Federal Court. (Granted: Federal Court)

Legal costs are being reviewed

Judge Murphy would also determine the amount of legal fees to be paid to attorneys involved in the class action.

In April this year, Shine Lawyers traveled to more than 200 communities across WA to register complainants ahead of the June 30, 2024 registration deadline, which was later extended until the end of September.

The firm’s legal expenses totaled just under $30 million.

However, Judge Murphy questioned the amounts spent on the registration process.

“How can it cost $10 million to register 15,000 people?” said the judge.

“This is a question I’m looking for an answer to.”

A close-up of the emblem on the exterior of the Federal Court of Australia building in Perth.

The matter was heard in the Federal Court in Perth.

While he said he had no criticism of the quality of work provided by plaintiffs’ lawyers, he said cost was significant.

“What concerns me is that no one will step back and ask, ‘How much did this process cost?’ “It’s because he doesn’t say it,” he said.

“I’ve never seen a record cost this much.”

Judge Murphy said he “could not yet decide the extent of the cuts” for claimants LLS and Shine Lawyers but said it would be “significant”.

“This was a big case, a big and difficult case where the lawyers worked hard to get a good outcome. They need to be paid,” the judge said.

Before closing, Judge Murphy praised the attorneys who brought the case and the quality of the submissions.