Chinese Australian MP Peter Wong has accused Textile, Clothing and Footwear Union (TCFU) of harassing and terrorising the owners of Sydney apparel manufacturer Goldbridge Clothing.

Wong said that TCFU unfairly named the company's operations as a sweatshop and raided the home of its owner Chun Sheng Tan last month after a tip-off from an unidentified caller.

TCFU, however, maintains that the businessman has been taking on workers from the area's Chinese community and paying them less than the minimum wage.

The union said that an illegal clothing production plant with 12 sewing machines had been set up in the garage of the house.

Wong, however, claims that the workshop is air-conditioned and a pleasant place of work, and that the pay conditions - calculated per garment - are not illegal.