Australian Prime Minister Scott Morrison has abandoned controversial laws that make it easy to deregister unions and rid officials.
It will create a new relationship between unions and employees with the Government involved.
Morrison is hoping to cooperate with unions better in an attempt to reform workplace laws.
He says this must be a critical element to the economic road to recovery, post the Covid-19 pandemic.
Australian correspondent Murray Olds told Andrew Dickens says it will take everyone a while to digest what Morrison is proposing.
"It is such a dramatic change.
"The whole architecture of politics over here has been framed Labour and the Unions versus the right wing coalition - the Liberals and the Nationals, and big business."