Federal Labor backbencher Joel Fitzgibbon says Labor's "devastating" loss in the NSW Upper Hunter by-election is "a very bad result" for the party but he doesn't think NSW leader Jodi McKay should quit.
Ms McKay's leadership is under intense pressure after Labor's primary vote slumped to 21 per cent on Saturday, down from 28 per cent at the previous election, while the Nationals candidate David Layzell claimed about 30 per cent of first preferences.
Mr Fitzgibbon says Ms McKay isn't to blame for the loss and that Labor's "brand" is the problem.
"I won't have a bad word said about Jodi McKay," he told ABC TV on Monday.
"She looks good, sounds good and she took the right narrative into the Upper Hunter by-election," he said.
"She is very supportive of jobs and job security and issues like the local TAFE, but it's the brand."
Mr Fitzgibbon, whose Hunter electorate is also in the heart of the state's coal mining industry, resigned from the federal frontbench last year amid an ongoing battle within the party over its stance on carbon emissions and the environment.
"A lot of our base walked away from us some time ago now and it's clear that they haven't returned," Mr Fitzgibbon said.
"You won't get them back quickly or easily."
Despite Labor having a coal miner candidate Jeff Drayton, Upper Hunter voters were sceptical about Labor's commitment to the industry.
"That suspicion is only fuelled by decisions made late or on the eve of the by-election to oppose the gas generator in the Hunter Valley, a $600 million investment, they just shake their heads and say, 'We thought so'," Mr Fitzgibbon said.
Labor candidate for Upper Hunter Jeff Drayton and NSW Opposition Leader Jodi McKay speak to the media on polling day in Muswellbrook on Saturday, 22 May. Source: AAP
"They say we believe not what you say, but what you do, and we have got a lot of work to do before we convince working people that we are on their side.
"The Labor Party has to speak more about jobs and jobs security as it does about climate change."
Four contenders being touted as possible leaders include Chris Minns, Ryan Park, Paul Scully and former leader Michael Daley.
