The prime minister hit out at Mr Setka after Nine newspapers published a 4000-word report following a months-long investigation into criminal links within the construction industry.
The report alleges major Victorian and NSW construction projects have been infiltrated by underworld figures and bikies acting as Construction, Forestry, Maritime and Energy Union (CFMEU) delegates.
Anthony Albanese slammed John Setka after the union leader resigned suddenly amid misconduct claims. (Russell Freeman/AAP PHOTOS)
"Trade unionists exist to look after workers, to look after their wages and conditions, and health and safety," Mr Albanese told reporters in Brisbane on Saturday.
"They don't exist to engage in the sort of conduct that John Setka has clearly been engaged with.
"It should be condemned, it should be isolated, it should be stamped out."
The Victorian and NSW governments have been contacted for comment.
Mr Setka resigned as the head of the CFMEU in Victoria on Friday night, declaring the move was designed to stop the barrage of "false accusations" and "false stories" about the union.
He was due to retire later in 2024 after 12 years.
His union leadership came into question in 2019 when Mr Albanese, who was then opposition leader, moved to expel him from the Labor Party over accusations he said family violence campaigner Rosie Batty's advocacy had led to men having fewer rights.
Mr Setka rejected the allegations and fought his expulsion from the party in court but was cast out months after being convicted of harassing his now estranged wife.
In recent weeks John Setka piled pressure on the AFL to sack its chief umpire. (Kelly Barnes/AAP PHOTOS)
In recent weeks, Mr Setka piled pressure on the AFL to sack its chief umpire and threatened to delay work on the league's construction sites if the sport failed to give in to his demands.
The 59-year-old criticised the AFL for hiring Stephen McBurney, the former head of the now-defunct industrial watchdog the Australian Building and Construction Commission.
In June, Workplace Relations Minister Tony Burke signalled a proposed union demerger bill that would allow the manufacturing division of the CFMEU to split from the broader organisation if supported by a vote.
Mr Setka's time in the top role also coincided with the public breakdown of his marriage to Emma Walters.
Ms Walters was in December 2023 found guilty of threatening to kill Mr Setka in "out of the blue" comments to a private investigator.
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