A political peace deal that could have ushered the troubled construction union into external administration for half a decade has fallen apart at the last minute.
Laws that would grant ministerial power to put the construction and general division of the CFMEU into administration were expected to pass the Senate on Thursday after tense negotiations between Labor and the coalition.
Enraged ministers accused the opposition of politicking after it agreed to a number of their concessions only to have the laws shot down after the coalition withheld support during a heated debate.
Workplace Relations Minister Murray Watt said all the opposition's demands had been met.
"It still wasn't enough," Senator Watt told reporters in Canberra after Labor failed to force a vote on the bill for a second consecutive day.
"And for that reason, John Setka and organised crime are still able to do whatever they want on construction sites," he said in reference to the disgraced former union boss.
The coalition called for a three-year minimum administration period, no political donations, and greater oversight including reports to parliament and bringing the administrator before Senate committees.
Labor agreed to expand the administration period from three to five years, outlaw political donations during that period and impose life bans on criminal officials from holding office at other organisations.
Senator Watt agreed to six-monthly reports but argued hauling an independent administration before the opposition would only lead to "a barrage of political attacks".
Labor and its state branches had already suspended ties with affiliated CFMEU arms and stopped donations, he said.
The government had not agreed to explicitly write the donation ban into law, opposition workplace relations minister Michaelia Cash said.
It would instead come when the minister outlined how the administration process would operate, she said, as she called for the scheme to be spelled out in the legislation rather than put in place by the minister afterward.
She also rejected Labor's argument it had agreed to more transparent measures and called for a ban on politician donations to extend to campaigning.
"Their CFMEU legislation is too weak to bring the rogue union under control," she said.
Under Labor's laws, union officials who frustrate the administration process face substantial fines and up to two years behind bars.
The scheme would be put in place by the minister and ending administration would require the administrator's request as a power check.
The Australian Constructors Association - representing construction contractors - called for the laws to be passed immediately, saying there was uncertainty in the industry over project outcomes and business operations.
Master Builders Australia warned delays resulted in "another day the entire industry is exposed to criminal conduct, bullying, coercion and intimidation on work sites".
