Labor executive to meet as states freeze CFMEU links

The union's construction division has been under fire over a series of Nine newspaper reports alleging corrupt conduct and organised crime links.

The national executive was set to meet on Thursday and would be "dealing with this in a fairly firm fashion", Workplace Relations Minister Tony Burke said.

"A number of state branches have already done so," he said but wouldn't pre-empt whether the executive would cut ties or refuse future donations.

"The division between their role and the role of ministers is important," he said.

While not wishing to breach that separation either, cabinet Minister Bill Shorten told the ABC's 7.30 program he fully expected the executive "to make sure there's no more donations received from the CFMEU until their house is cleaned".

Mr Burke has moved to install an independent administrator to overhaul the construction arm of the union.

He warned he would introduce legislation into parliament if the CFMEU challenged the proceedings.

The administrator would be appointed after a court application by the Fair Work Commission.

"The government will ensure the regulator has all the powers it needs to appoint administrators, there can be no place for criminality or corruption in any part of the construction industry," Mr Burke said.

The commission's general manager Murray Furlong said his organisation was carefully considering the allegations and had shared information with law enforcement. 

Peak union body the Australian Council of Trade Unions has suspended the construction and general division of the CFMEU while various state Labor governments have also moved to ice their affiliations and halt donations.

The vote of about 50 ACTU executives was almost unanimous, secretary Sally McManus said.

Ms McManus warned the union not to fight the Fair Work Commission's push to appoint an administrator, saying it was the best way to ensure confidence in the labour movement.

"We would ask the union, the whole of the union, including the Queensland branch, to co-operate with external independent administrators, this is the best path forward," she said.

Her comments came after Queensland and NT branch secretary Michael Ravbar said the prime minister had "panicked and soiled himself over some unproven allegations in the media".

Alleged criminal actions didn't represent the trade union movement, Ms McManus added.

The suspension of the division would last until the union could demonstrate "they are a well functioning, clean union free of any criminal elements".

"We absolutely reiterate our zero tolerance for corruption, criminal activities, all violence," she said.

"We'll root it out, we will continue to do what is necessary to rid our movement of any elements like that, this union movement is resolute in our determination to do so."

The CFMEU argues the move will strip tens of thousands of workers of effective representation. 

The union has also argued it can clean up its divisions, including with an independent review.

Business groups have welcomed the suspensions and administration announcements while the federal opposition has called for the union's deregistration rather than employing an administrator.

Former Australian Competition and Consumer Commission chair Rod Sims said he raised concerns about legal limitations inhibiting the watchdog in relation to the union during his tenure between 2011 and 2022.

"We had a very general and very serious concern that the CFMEU were controlling who could actually work on the building sites," he told 7.30.

Australian Associated Press