The Morrison government has put proposed laws making it easier to deregister unions and ban officials on hold, as it seeks cooperation on workplace law reform.
The union movement is fiercely opposed to the "ensuring integrity" bill, which was defeated in the Senate late last year.
While the coalition reintroduced the draft laws to parliament sparking a fresh round of protest from Labor and unions, the controversial legislation has now been paused.
Industrial Relations Minister Christian Porter said the bill should be supported because it cracks down on alleged unlawful conduct by the Construction, Forestry, Maritime, Mining and Energy Union.
"But the legislative response is presently on pause so we can focus on genuine dialogue around the really important issues which are, how do you get back a million jobs," he told the Australian Financial Review.
"How do you take advantage of these extraordinary circumstances to grow prosperity for Australian families?"
Industrial relations is being targeted as a key area of reform as the government looks to kickstart an economy reeling from the coronavirus pandemic.
Prime Minister Scott Morrison is expected to focus on the issue when he addresses the National Press Club in Canberra on Tuesday.