Construction industry superannuation fund Cbus is standing by its CFMEU-appointed directors even as senators demand it sever ties and Labor cut off its investment in major housing projects over allegations of criminality at the union.

Two former CFMEU bosses and the union’s current NSW construction branch boss sit on the Cbus board as part of a long-held practice where the unions associated with particular industry funds get to cherry-pick a certain number of directors.