Anthony Albanese hit out at Mr Setka after Nine newspapers published a 4000-word story on Saturday 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 has slammed John Setka after the union leader resigned amid misconduct claims. (Russell Freeman/AAP PHOTOS)
Mr Albanese said it was good Mr Setka had resigned as the head of the Victorian CFMEU, declaring he had no legitimate place in the Labor movement.
"Trade unionists exist to look after workers, to look after their wages and conditions, and health and safety," he told reporters in Brisbane.
"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."
Mr Setka resigned as Victorian CFMEU boss on Friday night, saying 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.
The Victorian opposition called for Premier Jacinta Allan to establish an independent investigation into the latest allegations against Mr Setka and the CFMEU.
Where is — David Southwick MP (@SouthwickMP) @JacintaAllanMP? https://t.co/LzMBwTMYMLJuly 13, 2024
"It's simply not good enough to hear, time and time again, the types of corruption on our worksites, in our Big Build," deputy Victorian Liberal leader David Southwick said.
"These are government projects that Victorians all pay for."
In a statement, a Victorian government spokeswoman described the allegations as "extremely serious" and said they needed to be investigated by the appropriate authorities.
"Our expectations are clear - there is zero tolerance for illegal behaviour," she said.
"John Setka has resigned - as he should."
The NSW Labor government declined to comment.
Mr Albanese moved to expel Mr Setka from the Labor Party in 2019 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.
John Setka has piled pressure on the AFL in recent weeks to sack its chief umpire. (Kelly Barnes/AAP PHOTOS)
On Saturday, the prime minister stood by his intervention to oust him from the party.
"John Setka is someone who, it was clear to me, had no place in a party that I lead, which is why I took the action that I did," Mr Albanese said.
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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