The Victorian branch of the Construction, Forestry, Mining and Energy Union (CFMEU) is threatening to cut donations to the ALP if its embattled secretary John Setka is expelled from the party.

Key points: The management committee said demands for Mr Setka's expulsion were a "political act"

The management committee said demands for Mr Setka's expulsion were a "political act" It passed four resolutions to take to the national executive meeting in Canberra this week, including a threat to halt funding to the ALP

It passed four resolutions to take to the national executive meeting in Canberra this week, including a threat to halt funding to the ALP Anthony Albanese said his decision on Mr Setka was based on a long history of bringing the Labor Party into disrepute

The union revealed its management committee had voted to sever ties with Labor if a move to expel Mr Setka, put forward by Labor leader Anthony Albanese last week, went ahead.

The controversy escalated in the wake of reports that Mr Setka, who is the Victorian and Tasmanian secretary of the CFMEU, had disparaged the work of anti-violence campaigner Rosie Batty.

After days of intense pressure, Mr Setka defied calls from both sides of politics to stand down.

The union's divisional branch management committee issued a statement saying it "unconditionally supports Mr Setka" and passed four resolutions to take to the union's national executive meeting in Canberra this week.

John Setka's union is demanding a statement backing his leadership from the national executive. ( AAP: Joe Castro )

Those resolutions labelled the demand for Mr Setka's resignation a "political" act and called on the union's national executive to issue a public statement of support for him.

The management committee said if the expulsion threat was carried out "all financial and in-kind support to the ALP [would cease] immediately from the Victorian branch of the CFMEU".

The resolution was passed unanimously by members of the branch committee.

Mr Setka met with ACTU boss Sally McManus last week who called on him to resign in the interest of the broader union movement.

"Because when the behaviour of one of us can affect all of us … that is the current situation that we face," she said last week.

The committee noted that a handful of unions were calling for Mr Setka to resign.

"Following these calls, and as of today, the Victorian branch of the CFMEU will no longer recognise traditional long-held membership coverage and demarcation lines with unions that have attacked this branch," one of the resolutions said.

'Bringing Labor into disrepute'

Mr Albanese told the ABC's Afternoon Briefing program he was not worried by the branch's threat to withdraw funds.

"The decision which individual unions make is one for them, whether they want to support Labor being in government or not," he said.

"My decision on Mr Setka is based upon his long history of bringing the Labor Party into disrepute.

"Every time Mr Setka gets a run on page one of the newspaper it hasn't been for trade union wins, wage increase for deserving workers, it's been a negative."

He said he had sought legal advice before his move to expel Mr Setka from the party and was confident that the right of political parties to determine their own membership would survive any challenge.

Mr Setka had earlier told The New Daily he would mount a legal challenge against his expulsion.