Former federal Labor minister Martin Ferguson has avoided expulsion from the ALP, following a push from unions to have him kicked out for alleged disloyalty and criticising the party.

Many in the ALP were infuriated when he backed the NSW Coalition's plans for privatisation during March's state election – NSW Labor senator Sam Dastyari accusing the former ACTU president of a "bastard act".

Martin Ferguson says producers need to take lessons from the recent boom if we want to attract more investment. Credit:Chris Pearce

The comments were then used in a Liberal Party campaign advertisement.

In March Victorian Trades Hall, led by Maritime Union secretary Kevin Bracken, moved to have him expelled after Mr Ferguson publicly supported the reinstatement of the union-hated Australian Building and Construction Commission, claiming the militant construction union must be "brought to heel".