Rudd standing aside wouldn't help. I can't imagine how this deep-seated malignancy can be cured and rebirthed as a going concern in the short term.
The ALP has absolutely no role to play in this democracy without a complete rebuild from the ground up. Better to allow a completely new political party evolve devoid of union influence.
First base is to make sure the criminal elements throughout the current ALP/union/mafia is severely dealt with so that this can never happen again.