The government’s union-busting bill has suffered a shock defeat in parliament after Pauline Hanson and Jacqui Lambie voted against it.

One Nation was prepared to support the legislation as long as unions wouldn’t be punished for minor breaches.

The bill would prevent big union mergers and allow the federal court to deregister a union that breaks the law and ban officials for misconduct.

One Nation Senator Malcolm Roberts tells Ross Greenwood they voted down the bill because the government is too soft on white-collar crime.

“There are so many inconsistencies with the government.

“We’ve sent a signal to the government that they need to show they’re fair dinkum about white-collar crime as well.”

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Image: Getty/Tracey Nearmy