The Victorian branch of the CFMEU is put into administration following reports in the media alleging underworld figures and bikie gang members had infiltrated major construction projects.
An emergency meeting of the CFMEU's national executive was held on Monday morning following reports from Nine newspapers that alleged underworld figures and bikie gang members had infiltrated major construction projects.
"The Victorian branch has been hugely successful in pursuing this purpose, but the national executive also recognises that a number of recent allegations are serious and demand an unprecedented response."
Speaking to ABC Radio Melbourne, Prime Minister Anthony Albanese said the decision to put the Victorian branch into administration was "a good thing" but further action was needed.
The reports published in Nine newspapers claimed criminals had been given highly paid jobs on government-funded projects under the watch of Victorian branch secretary John Setka.
In his resignation statement, Mr Setka said "ongoing false allegations" had dealt harm to the union and he was stepping down in a bid to put an end to the "malicious attacks".
On Sunday, the Federal Minister for Employment and Workplace Relations, Tony Burke, put the union "on notice" and said he would not rule out deregistering its construction division after the allegations came to light.
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