Queensland is the latest branch of the Labor Party to have a major falling out with the Electrical Trades Union (ETU).

A fresh battle has broken out between unions and the Queensland Government over asset sales, with the ETU facing expulsion from the Labor party.

The ETU is considering supporting non-Labor candidates at the next election in an anti-privatisation protest.

Premier Anna Bligh says moves to expel the ETU from the party will begin this week.

ETU state secretary Peter Simpson says members have not decided yet if they would back other candidates and the ETU will fight expulsion with everything it has got.

"It's just proof of where we're heading as a Labor party now - we're turning into a dictatorship," he said.

But Ms Bligh says she is not acting alone.

"That is the view not only of myself but of senior officers across the spectrum of the party and from a broad cross-section from other trade unions," she said.

Ms Bligh says the ETU nationally is becoming a militant and extremist organisation.

The ETU's suggestion it may support non-Labor candidates at the next election is the final straw for Ms Bligh.

"He can do that from outside of the Labor party he won't be doing it from inside the Labor party," she said.

Ms Bligh says it is a breach of party rules and action will start this week.