A multibillion-dollar superannuation fund has been told to review links to the CFMEU as the construction union faces an administration stare-down with the government.
Finance industry watchdog APRA has imposed extra licensing conditions on BUSSQ and United Super.
BUSSQ is the trustee for the $6.7 billion Building Unions Superannuation Scheme, while United Super is the trustee for the Construction and Building Unions Superannuation Fund (Cbus), which oversees $92 billion in funds.
APRA has told the funds to get an independent expert to review union-appointed board members to ensure they're "fit and proper" after the CFMEU faced allegations of links to organised crime and corruption.
“APRA is prepared to take strong action to give members confidence that trustees are making decisions in their best financial interests,” deputy chair Margaret Cole said on Wednesday.
The embattled union is also facing a sustained attack from Labor, which has tabled a bill in parliament to give the minister power to appoint an external administrator to take over the construction division and branches.
An administration period of up to three years would apply and union officials obstructing or frustrating the process would be fined or jailed.
But the government is struggling to pass the legislation, with the Liberals calling for tougher action and the Greens questioning some provisions.
Administration for all branches of the construction union must apply for a minimum of three years and the minister shouldn't have the power to end it, opposition workplace relations spokeswoman Michaelia Cash argued.
She also called for the process to be clearly outlined in the law rather than leaving it to be determined by the minister afterward and for any scheme only to be varied by a federal court application from the administrator.
"We want to clean up the CFMEU," she told reporters in Canberra.
"We are talking organised crime, we are talking outlaw motorcycle gangs, we are talking bullying, thuggery and intimidation that is entrenched."
Labor wants to pass the bill by Thursday as negotiations continue.
The opposition will also introduce legislation to re-establish the construction watchdog and ban union officials who break the law from holding office in a registered organisation for life.
Labor has opposed both, arguing the Australian Building and Construction Commission was ineffective as it was in place when the criminal activity allegedly took place and a lifetime ban targeted ordinary workers.
