In 2020, Senior Gooniyandi Elder Mervyn Street launched legal action against the state of Western Australia on behalf of workers and surviving relatives whose wages were stolen.
Thousands of Aboriginal people were subject to legislation between 1936 and 1972 which saw them receive little or no pay.
On Wednesday, the state government settled the class action agreeing to pay up to $180.4 million to those eligible.
The payments include a separate amount of up to $15.4 million for some of the Applicant’s legal costs.
The state will also issue a public acknowledgement and apology in WA Parliament to surviving and deceased Aboriginal workers on November 28.
Mervyn Street launched the legal action back in 2020. Credit: NITV
WA Premier Roger Cook said the government has been "committed to resolving" the matter in the "spirit of reconciliation".
"I am glad we have been able to now reach a settlement," he said.
“It is an important development in recognising the past injustices inflicted on Aboriginal and Torres Strait Islander people.
“We hope this agreement can contribute to healing for those impacted.”
The state's Aboriginal Affairs Minister Dr Tony Buti said the settlement was a "recognition of the wrongs of the past".
The settlement is subject to approval by the Federal Court of Australia, the court will then decide the exact amount of each claimant.
It’s believed Mr Street will advocate that those who worked longest under the said legislation to receive the most compensation.
Vicky Antzoulatos, Joint Head of Class Actions at Shine Lawyers, who represented the claimants said today was a “victory”.
“Workers and their descendants suffered inter-generational disadvantage because of the legislation in place in the State of Western Australia over many decades which directly affected the lives and livelihoods of Aboriginal people,” she said.
"Financial compensation is one way to acknowledge the suffering of First Nations people. It doesn’t correct the past but offers a way forward.”
She hopes that the class action can inspire "greater understanding of the experiences of Aboriginal people in Western Australia".
Litigation Lending Services Limited financially supported the class action, their Chairman Shaun Bonétt thanked Mr Street and those who "stood up to fight for those affected".
“‘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," he said.
“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."