The NSW government will suspend the construction arm of the CFMEU from the Labor Party and move to appoint an independent administrator, declaring the troubled union is "unable or unwilling" to clean up its act.
After allegations a senior construction union official was caught on film accepting a bundle of cash in 2020, Premier Chris Minns and Treasurer Daniel Mookhey wrote to the NSW Labor branch to demand the division be suspended from the party.
Mr Minns went a step further on Wednesday afternoon, moving to take the union's construction and general arm to the Industrial Relations Court to impose an independent administrator.
Nine newspapers reported that a police camera hidden in the ceiling of the CFMEU's Sydney office caught the senior figure accepting an alleged kickback from a building company representative in return for union backing of a project.
Having received no explanation from the CFMEU, Mr Minns said decisive action was the only call to make after the "appalling" revelations.
"The CFMEU construction division is either unable or unwilling to reform its leadership in the face of devastating allegations that are of a very serious nature," he said.
"I've been all ears from the CFMEU in NSW for an explanation, or perhaps a resignation … absolutely nothing has been forthcoming (and) under those circumstances we're left with no alternative other than to take what is unprecedented action."
Mr Minns and Mr Mookhey said they were working with the federal Labor government on a co-ordinated approach to dealing with the union following the airing of widespread corruption and misconduct allegations.
An independent administrator could also be appointed for the central construction arm of the CFMEU after the Fair Work Commission moved against the union.
The CFMEU's national office previously placed its Victorian and South Australian branches into administration and launched its own investigation.
NSW Labor will not accept any affiliation fees or donations from the union, but the premier denied funds previously received from the organisation were "dirty" and rebuffed calls to pay it back.
The state opposition repeated its call for a royal commission into the union's operations following the "shocking" misconduct allegations.
Acting NSW Opposition Leader Damien Tudehope said the premier should expel the CFMEU from the party altogether based on "years of alleged shady dealings".
"The premier's half-hearted measures are an insult to the people of NSW ... we need a royal commission to uncover the full extent of the CFMEU's corruption," he said.
The state's measures included asking the federal government to review enterprise bargaining agreements in NSW that the CFMEU was party to.
The NSW Construction Compliance Unit will also work with federal regulatory bodies and act on any allegations, Mr Minns and Mr Mookhey said.
The Master Builders Association has been getting legal advice on what will happen to enterprise agreements brokered by the CFMEU if the union is deregistered, including the possibility existing deals would be rendered void.
"I can tell you that industry is hoping that if (the union) survives, it's going to be in a different form because we have had nothing but constant thuggery and duress," NSW executive director Brian Seidler said.
The CFMEU NSW branch has been contacted for comment.
