Trade union report 'watershed' moment: PM

The trade union royal commission has uncovered many examples of misconduct in the union movement, Prime Minister Malcolm Turnbull says.

"If the lessons of this report are learned, the trade union movement will emerge much stronger," he told reporters in Sydney on Wednesday.

"It is a real watershed moment.

"For the labour movement, for its leaders, for Mr Shorten," he said.

"They can take this opportunity to support these recommendations and undertake real and lasting reform of the trade union movement," Mr Turnbull said.

"This is a real test for Mr Shorten, Ms Plibersek and all the leaders of the union movement."

The prime minister said he was confident the union movement would emerge stronger if it supported the 79 recommendations made in the report - which detailed a long list of union officials who may have committed crimes including blackmail, bribes and threats of violence.

The federal government is now working to introduce stronger and more effective legislation for the lack of accountability and transparency in the union movement, Employment Minister Michaelia Cash said.

Legislation for the re-establishment of the Australian Building and Construction Commission and a new Registered Organisations bill will be introduced into parliament early next year, she said.

"We will not stand by and allow this scandalous behaviour to continue," Ms Cash said during a joint press conference with the prime minister.

"This government will take firm and swift action."