Transport Workers Union (TWU) national secretary Tony Sheldon is launching defamation action against the Employment Minister over comments he made about the misuse of union membership fees.
In February, Eric Abetz told the ABC's Q&A program that Mr Sheldon had used members' money to bankroll a Health Services Union campaign without the members' knowledge.
Mr Sheldon denies the claim, saying he was completely transparent about his role in the campaign to oust Michael Williamson from the HSU and that no TWU money was used.
He says Senator Abetz's claim has damaged him by implying that he is corrupt and untrustworthy.
Lawyers acting for Mr Sheldon have asked Senator Abetz to take out advertisements in major metropolitan newspapers retracting the statement and unreservedly apologising.
A TWU spokesman said Senator Abetz's remarks had damaged Mr Sheldon and the union's members.
"Mr Sheldon took a direct and active interest in removing the corrupt influence of Michael Williamson from the HSU and the broader union movement and would do so again today. Crucially, no TWU money was spent on this action," the spokesman said.
"The minister ought to front the royal commission into trade union governance to explain how he formed the incorrect view that TWU money was used in this election."
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