The Prime Minister has delivered a pep talk to the union movement, as opinion polls show Labor faces a major defeat at this year's election.

Julia Gillard told the Australian Workers' Union conference on Monday night that Labor has more to do on education, jobs and workplace laws.

She spruiked her and accused the Coalition of having an agenda of cost cutting.

She also warned against wage reductions and flagged further changes to the Fair Work Act.

"When it comes to fairness and decency at work, we've got more to do," she told the conference.

Ms Gillard said 2013 will be about fighting for the Labor cause every day until the election.

"I am very confident that as we fight that campaign, Australians will see that we have the plan for the nation's future that is right for their family and for their children and for the nation beyond that," she said.

After the speech, AWU national secretary Paul Howes pledged the full support of his members up to the federal election.

"You will have our voices as we march towards September," he said.

Poll misfortune

The latest Nielsen poll, published in Fairfax newspapers, .

At the same time, the Coalition's primary vote has risen to 47 points.

After preferences, the Coalition has a thumping election-winning lead of 56 per cent to 44 per cent.

The figures also reveal a dramatic reversal in who voters would prefer as prime minister.

Support for Tony Abbott has jumped nine points to 49 per cent, while Julia Gillard's support has dropped five points to 45 per cent.

Labor frontbencher Simon Crean yesterday conceded the results were terrible news for the party just seven months out from the next election.

"It's a wake-up call isn't it. You can't gild the lily," he told Fairfax radio.

Federal Treasurer Wayne Swan will address the AWU conference later today.