The Engineering, Printing and Manufacturing Union has had its listing to campaign in the election suspended for another two weeks to allow a court challenge to be heard.
The National Party is seeking a judicial review of the Electoral Commission's decision to allow the union to list as
a third party, which would allow the union to spend up to $120,000 on election advertising. It is also seeking an interim order to prevent the union listing until the court case can be heard. The Electoral Commission was due to list the union on Friday night but has further delayed it until the hearing for the interim order on August 25.
Even if National's appeal is unsuccessful, the union will be left with only about two months to mount an election-related campaign, despite attempting to list in January.
Under the EFA, people or organisations involved in the administration of a political party are ineligible to become third parties. National says allowing the EPMU to list will open the way for other groups involved in political parties to run parallel campaigns.
If the EPMU is prevented from listing, it will be unable to spend more than $12,000 on election advertising for or against political parties or their policies.
Mr Little said the EPMU would not be seeking to be represented in court for the challenge. It would not affect the union's workers' rights campaign which was based on issues rather than political parties.
In its recent decision, the Commission said although the union had voting rights and members held positions on Labour Party committees, it was not involved in "the administration" of Labour's affairs.
It said it would reconsider if there was evidence the union's national secretary Andrew Little was acting under EPMU direction in his job as affiliates vice-president on Labour's council.
The National Party has now twice challenged the Electoral Commission's decisions to allow the union to go ahead.