THE Health Services Union is haemorrhaging members as workers react with anger to reports that Craig Thomson repeatedly misused members' funds over five years, including the procurement of prostitutes.

The release on Monday of Fair Work Australia's report on the federal MP has shaken the loyalty of the union faithful to its core.

Disappointed ... Health Services Union hospital workers Toula Kyriazopoulos, left, Gina Fook, Sureksha Aryal, and Virgina Aranzamendez yesterday. Credit:Kate Geraghty

''They are outraged about their money being used, they are outraged about the allegations and the lies they've been told,'' an HSU delegate, Katrina Hart, said.

''A lot of them don't earn that much money, and the $600 a year that they pay in membership fees is a lot of money for them.