Settlement, subject to court approval, will grant compensation to thousands of First Nations people
The Federal Government has agreed to pay up to $202 million as a settlement for a historical wages class action filed on behalf of thousands of Aboriginal and Torres Strait Islander workers in the Northern Territory.
The class action, led by Minnie McDonald, was brought on behalf of thousands of First Nations people who lived and worked in the Northern Territory between 1933 and 1971.
This was the period when Commonwealth laws allowed First Nations people in NT to not be paid, or to be paid much less than their non-Indigenous counterparts for the same work.
"The NT historical wages class action concerns a deeply regrettable and shameful chapter in Australian history," said Indigenous Australians Minister Malarndirri McCarthy in a statement.
Mediation between the lawyers for the government and Shine Lawyers has led to the settlement of up to $202 million, as the Commonwealth also agreed to contribute to legal costs and administration.
"This is a significant step towards fixing the wrongs of the past and I acknowledge Minnie McDonald and every First Nations person involved in bringing this class action forward to seek redress and healing," McCarthy said.
Subject to Federal Court approval
The settlement remains subject to approval by the Federal Court, which heard last year evidence from hearings in Darwin, Tennant Creek, Katherine, and Alice Springs.
If approved, up to $180 million will be distributed to eligible claimants in accordance with a scheme that will be approved by the court.
According to the NT Government, the parties in the case have also requested the Court to approve equality in settlement payments between men and women, noting that women were also paid less than men for the same hours of work.
"It is my hope that, if approved, the settlement will bring closure to many First Nations people impacted by these Commonwealth laws," McCarthy said.
A similar settlement was also reached in Western Australia last year, which will see the government pay up to $165 million to eligible Aboriginal workers, their spouses, and children.
