NSW Premier Chris Minns and Treasurer Daniel Mookhey have written to the NSW Labor general secretary after the airing of fresh corruption allegations against senior union officials.
They have asked the state branch to take the necessary steps to immediately suspend the CFMEU construction and general division's affiliation with the party and stop any donations or affiliation fees.
"The revelations that have come to light this morning are appalling," Mr Minns and Mr Mookhey said in a statement on Wednesday.
"There is absolutely no tolerance for criminal or corrupt behaviour in the building industry, in unions or anywhere for that matter.
"It is clear the CFMEU construction and general division will not and cannot clean itself up."
Nine newspapers reported that a police camera hidden in the ceiling of the CFMEU's Sydney office caught a construction union boss accepting a bundle of cash in 2020.
The money was allegedly a kickback from a building company representative in return for union backing of a project.
The NSW opposition called for a royal commission into the union's operations following the "shocking" misconduct allegations.
Acting NSW Opposition Leader Damien Tudehope said the premier's statement was an insult to every honest worker in the state as the party had long accepted money from the union.
"The people of NSW deserve a leader who genuinely stands against corruption, not one who only acts when his party is caught out," he said.
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.
"We will also ask the commonwealth government to review enterprise bargaining agreements in NSW which the CFMEU is party to," they said.
"Further, the NSW Construction Compliance Unit will work with federal regulatory bodies and act on any allegations."
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 told ABC Radio.
Additional action against the state union branch could be revealed later on Wednesday, but Mr Mookhey hinted that could include the NSW entity being placed into administration.
"It's pretty evident that we will be taking action ... to remove the NSW leadership," he told Sydney radio 2GB.
The CFMEU's national office has already placed its Victorian and South Australian branches into administration and launched its own investigation.
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