Yes. They can say what they like, but until they can find 167 votes from Labour MPs to remove him, he stays. https://members.parliament.uk/parties/Commons

This is where the intra-party coalitions become important. Every party of significant size has them. Labour is effectively a coalition between a rightwing faction (New Labour/Blue Labour) and everyone else who is more leftwing. The internal and external debate is the question: should they focus "right" (immigrant and queerbashing, welfare cuts) to appease the right wing of the party and try to pick up Reform/Conservative voters, or focus "left" on their base and people who are switching to Green?