Lawyers for construction union boss John Setka are demanding Labor officials hold fire on expelling him from the party, as they prepare to mount another appeal.
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Mr Setka has already lost a Supreme Court bid to prevent his expulsion, but now plans to take his fight to the Victorian Court of Appeal.
Opposition Leader Anthony Albanese has for months been trying to cut the CFMMEU official adrift, accusing him of bringing the Labor Party into disrepute.
But Mr Setka is clinging on, and has the backing of some powerful union allies.
His protracted legal battle could ultimately end up in the High Court.
The relationship soured after Mr Setka was accused of making disparaging remarks about anti-violence campaigner Rosie Batty.
Soon afterwards, he was convicted for harassing his wife.
The prime minister delighted in the latest legal twist.
He told parliament Mr Setka was staging a "sit-in" within the Victorian Labor Party.
"So whether it's the Setka sit-in, or the walkout of WA factions ... the corruption we're seeing in the NSW Labor Party, the leader of the opposition is presiding over a party that is chaos and confusion and even corruption."
The Morrison government has seized on the conflict to revive legislation aimed at deregistering rogue unions and their officials.
But Labor claims the Morrison government is using Mr Setka as a "stalking horse" to ram through its union-busting laws.
Opposition frontbencher Tony Burke said the legislation would have no effect on Mr Setka, as it would not operate retrospectively.
"They are using Setka as a stalking horse - cover to ram through an extreme and dangerous bill that represents an unprecedented assault on freedom of association and will be weaponised against workers," Mr Burke said.
He argued the coalition was falsely portraying Mr Setka as typical of a union movement dominated by "big, blue bovver-boys" who wanted to make trouble.
"That's nonsense," Mr Burke said.
"The average union member today is a woman in her 40s who works in aged care.
"These are the kinds of workers - whether they are members of a union or not - who will be hurt by this legislation."
A Senate committee scrutinising the industrial relations bill is due to report by late October, before the proposed laws are debated in the upper house.
Australian Associated Press
