Smith also accused Corbyn of presiding over a rise in anti-semitism in the party during his nine months as leader and not doing enough to tackle it. Smith said he is “ashamed” the Labour Party is being associated with racism against Jews.
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They took part in the first hustings of the leadership contest in Cardiff on Thursday night.
The other banner, held by Mr Smith, says “Give me back Elmo”, a reference to his child he is believed to be locked in a custody battle over.
He spoke to hundreds of supporters at a rally in Merthyr Tydfil’s Penderyn Square, the scene of the start of the 1831 Merthyr Rising.
In response to Smith, Shadow Chancellor John McDonnell said: “I’ve given my whole life to this party, there’s no way I am ever, ever going to allow this party to split”.
Father of two Bobby Smith told the Standard they managed to get on Mr Corbyn’s roof around 10am this morning with a set of ladders after narrowly avoiding two police officers.
“We’re staying up here until we’ve got our message across, we’re not going to be intimidated by them and hopefully Jeremy Corbyn will get the message”. We are delighted that Corbyn has accepted our challenge, and included the extension of free hours towards universal childcare in his speech.
“No-one and no community will ever be left behind by Labour”, he said.
Corbyn said a Labour government under him would pledge to build 1m new homes in its first term, half of them council properties.
“The assembly election results, we gained some seats as well as losing one”, he said.
Four other unions, the Communication Workers’ Union, the construction workers’ union UCATT, and the rail unions Aslef and TSSA have backed Mr Corbyn.
Party members, affiliated trade union supporters and so-called registered supporters are able to vote in the election. He pledged that he would appoint a “broad” shadow cabinet and urged every Labour MP to work with him if he is re-elected on September 24.
Mr Smith shared videos on social media showing police closing off the street in north London and the pair talking to “negotiators in Corbyn’s house” through a skylight.
Mr Corbyn’s call on the day after the poll for the withdrawal process to begin immediately had effectively “allied ourselves to the Tories” he said.
“The style of politics that people want, I think that attracted them to Jeremy Corbyn is what you see is what you get, principled, straightforward”.
He also paid tribute to the Welsh Government for their scrapping of prescription fees, and said it was because of their success booting capitalist markets out of the healthcare system that people were so keen to disparage it.
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The audience erupted into loud cheers at the Labour leader’s remarks but were met with fury from Mr Smith. “I think as an opposition we’ve done very well”.
