The CFMEU's construction arm has come under fire over allegations of corrupt conduct and organised crime links within its ranks, with the Fair Work Commission set to appoint an independent administrator to the union.
Several state Labor governments have already moved against the union with Queensland freezing talks, and NSW and Victoria pausing donations from the organisation.
And on Thursday, the federal Labor Party followed suit.
Paul Erickson says Labor will suspend the CFMEU construction branch's party affiliations. (Mick Tsikas/AAP PHOTOS)
After a national executive meeting, Labor's national secretary Paul Erickson announced it would suspend the CFMEU's construction division's affiliation to the NSW, Victoria, South Australia and Tasmanian branches of the party.
This means the Labor Party will not accept affiliation fees or political donations from the troubled union arm.
"The number one job of any union and its officials is to look after its members. The reported behaviour is the complete opposite of this," Mr Erickson said.
The suspension will remain in place until further notice, and the party will consider suspending affiliations with the union's other branches if they are placed into administration.
The ACTU has moved to suspend the construction division of the CFMEU. (Joel Carrett/AAP PHOTOS)
This comes after Workplace Relations Minister Tony Burke vowed to introduce legislation if there were any challenges to the commission's attempts to put the construction branch of the CFMEU into administration.
He has also requested the Fair Work Ombudsman review enterprise agreements made by the Victorian branch of the CFMEU's construction division after a request from Premier Jacinta Allan, and called the Australian Federal Police to investigate the reports.
Prime Minister Anthony Albanese said the government had taken swift measures.
"Where we see corrupt conduct, we want it stamped out," he told reporters in Queensland.
Opposition Leader Peter Dutton urged on the government to go further and previously called on them to deregister the union.
"CFMEU is the most recalcitrant of any of the unions, and they're an organisation that's been responsible for bad work practices," he told Sydney 2GB radio.
But Mr Albanese said deregistration would not be effective as the CFMEU could still operate without proper regulation.
"We need to make sure is that we get this right and take tough action, not just tough rhetoric," he said.
Fallout from the allegations has also rattled the broader labour rights movement with the Australian Council of Trade Unions (ACTU) moving to suspend the construction division of the CFMEU.Â
ACTU secretary Sally McManus said she was previously unaware of the allegations but estimated it would take years for the union to purge its alleged criminal elements and restore its name.
She also revealed she had been warned of threats to her safety after previous attempts to go after the CFMEU, but remained steadfast.
"We will do what's necessary, I will do what's necessary, the union leadership will do what's necessary," she said.
"We will not flinch."
The head of the national workplace relations regulator also said investigations into the CFMEU were continuing, after being asked to examine the allegations by Mr Burke.
"If unlawful conduct is established we will take appropriate enforcement action," Fair Work Ombudsman Anna Booth said.
"Improving compliance across the building and construction industry is a priority for the Fair Work Ombudsman, and we will continue to investigate reports of non-compliance and hold to account those who act outside the law."
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