More than 60 Labour Party members met in Dublin to campaign for the party's policies to be implemented in Government.
The group have called for an immediate special party conference to seek an urgent review of the Programme for Government.
MEP Nessa Childers urged Labour Party members to take action to save the party and the people it represents.
Ms Childers, who yesterday resigned from Labour's Parliamentary Party, got a standing ovation at the meeting this morning.
She said taking a stand is not easy, but said she was sick and tired of worrying about offending the leadership.
The party is running out of time and urgent action is required, even if that means getting into conflict with Labour TDs, she said.
Paul Dillon, spokesperson for the Campaign for Labour Policies, said the party has to stand up to Fine Gael to tax the wealthy.
He said the Meath East by-election has sent the party a clear message that Labour should not continue to back austerity measures.
The Mayor of Fingal, Cian O'Callaghan, said the next two budgets must be progressive to bridge the widening gap between rich and poor.
He said the party's core values were the most important thing and the leadership question was secondary.
Meath East member John King said the party leadership needed more shocks like the by-election result to force them to change.
Dublin Central member John Woods said that the party was spent as a force for change and could be decimated at the next general election.
Dublin West TD Patrick Nulty said it is going to take massive pressure from this group of Labour Party members to change the direction of Government.
Elsewhere, Labour TD for Cork East Seán Sherlock has defended the Labour Party in Government.
He said there was no crisis in the party.
Speaking on RTÉ's Saturday with Claire Byrne programme, Mr Sherlock said he fully acknowledged that Labour had not yet been able to deliver on child benefit and student registration fees.
He said Labour was only two years into a five-year mandate and the party felt it was probably shouldering 100% of the blame.
Mr Sherlock said the public discourse is that the decisions that have been made are largely at the door of Labour.
Deputy Sherlock said there were some people peddling the idea that the leadership was trying to stifle a conference.
He said it was decided by the party's executive last October not to hold a conference until autumn because of the Irish presidency of the European Union.
Deputy Sherlock said Labour was going through a very difficult phase and that it was not the first time it has been at this juncture when it decided to go into government in very tough economic times.
He acknowledged that there are members who have left the parliamentary party but said there was a unitary level of purpose among those who meet weekly in the party.
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