"The Prime Minister himself came out and said 'it's not up to us to deal with it, it's up to the board to deal with the banks' - but that's not good enough," she said. Senators Jacqui Lambie and Pauline Hanson both voted against the bill. Credit:Alex Ellinghausen "This is a warning shot across the bows of the unions and the government. "I'm telling the unions: get your act together, clean it up, and don't use your bullying or corruption. "And it's also a warning to the government: clean up the white-collar crime, go after the banking officials and prove to the people of Australia that you're here for everyone."

Senator Hanson's move came after she and colleague Malcolm Roberts negotiated amendments with the government aimed at softening its impact on unions. The government had been widely expected to pass the bill, with one employer group even releasing an embargoed press release welcoming its passing on Thursday afternoon. Labor's Senator Don Farrell with One Nation senators Malcolm Roberts and Pauline Hanson, and Jacqui Lambie after the Ensuring Integrity Bill was defeated. Credit:Alex Ellinghausen Attorney-General Christian Porter said the government had not given up on the bill and intended to reintroduce it "at an appropriate time". "Obviously I am very disappointed in the result in the Senate," he said.

"This is important reform which seeks to ensure that registered organisations obey the law ... It's for Pauline Hanson to explain why she voted against a bill that met every requirement she sought through extensive consultation." But Senator Hanson played down the prospect that she would switch her postition on the bill this year, saying she wanted to see action rather than words from the government on dealing with white-collar crime. Attorney-General Christian Porter was "very disappointed" the bill didn't pass. Credit:Alex Ellinghausen Labor's industrial relations spokesman Tony Burke said the government's "anti-worker, union-bashing laws ... should now be abandoned". "The government arrogantly believed they had this vote in the bag," Mr Burke said.

The bill's defeat is a significant blow for the Morrison government's industrial relations reform agenda and comes as Mr Porter consults on proposed changes to allow major infrastructure employers to lock in pay rates for the length of their projects. Mr Porter has also signalled a review of the award system, the minimum wage safety net, which employers argue is "too complex". Shadow Minister for Employment Brendan O'Connor and Labor's Senate Leader Penny Wong after the bill was defeated. Credit:Alex Ellinghausen Australian Industry Group chief executive Innes Willox said the Senate result was a "disappointing win for union thuggery" that would embolden the militant CFMMEU. "The final version of the legislation had safeguards built in to ensure that only the worst of behaviour would be sanctioned.

"The CFMMEU's conduct displays blatant contempt for the laws already passed by Parliament. No organisation can be allowed to adopt a business model of law-breaking and to treat the fines imposed by courts as just the cost of doing business." Australian Council of Trade Unions secretary Sally McManus said the union movement would continue to fight the Coalition's industrial relations agenda, including proposed changes to the award system. ACTU President Michele O’Neil and Secretary Sally McManus. Credit:Alex Ellinghausen "I've got a message for Scott Morrison: don't mess with working people," Ms McManus told reporters in Canberra on Thursday night.