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In short:
Special legislation to force the CFMEU to accept an administrator will be introduced to parliament "as a matter of urgency".
The workplace relations minister said the CFMEU had acted too slowly on an application before the courts to appoint an administrator.
What's next?
The legislation will be introduced when parliament resumes next week, which the government hopes can be passed without review.
The federal government will introduce laws to force the CFMEU to accept an administrator, after the construction union failed to consent to doing so.
Workplace Relations Minister Murray Watt said "urgent action" was needed after the construction union failed to accept the application for an administrator to be appointed, after allegations the CFMEU had engaged in bullying, intimidation, and had allowed outlaw motorcycle gang members to act as delegates on large projects.
"There has been ample time for the CFMEU to decide whether they want to cooperate with the government … the time for delay, the time for messing about is over," Senator Watt said.
"Urgent action is required, and it is required now."
Senator Watt said it had been clear from the CFMEU's response to date that it would take "far too long" to wait for the application for an administrator to progress through the courts.
The legislation would give the minister immediate powers to set down a scheme of administration to determine the powers and role an administrator would have, and allow the Fair Work Commission to appoint one.
That would be limited to the construction and general division of the CFMEU and not extend to other unions or divisions.
CFMEU national secretary Zach Smith had previously said the union would not declare its position on the proposed administration until next week, after the application was delayed because the presiding judge declared he had a conflict of interest and a new judge would be needed.
But some of the union's state branches had vowed to fight the attempt, labelling it a betrayal by Labor.
CFMEU calls move a 'full-frontal attack'
Mr Smith accused the government of taking "unilateral action" against the union that undermined the "democratic rights of union members to control their own future" in a statement on Friday, describing the action as a "full-frontal attack".
"Put simply, the government has undermined the legal process and stripped us of our rights to a fair process. It has also not given us the opportunity to address the issues in our union," he said.
"If the government was really interested in addressing issues of criminality, it would not design legislation targeted at the CFMEU, undermining your working rights, it would take action to target organised crime, wherever it is."
He said the union was exercising due diligence by meeting with the Fair Work Commission on Thursday to better understand what the process of administration would entail.
Senator Watt said "you could bet your bottom dollar" the CFMEU would seek to challenge the proposed special laws in court — but he said they had been drafted in such a way to withstand any challenge.
"We cannot stand by and allow a once proud union to be infiltrated by bikies and organised crime, or have bullying and thuggery as part of its day-to-day business," Senator Watt said.
"The seriousness of these issues demands immediate attention."
Senator Watt called on parliament to pass the bill without delay, urging them not to send it to committee after its introduction when parliament resumes next week.
Documents filed in the Federal Court this week revealed the CFMEU and its members had broken federal law 2,600 times in the past two decades, costing the union more than $24 million in fines.