In fact the outcome of the vote was very close, so 'respecting the people wishes' means ignoriing the wishes of nearly half of the population.
My solution is for the Labour party to demand an election (Theresa May has not been confirmed by voters), and take the position that they will stay in the EU if they win.
That would solve the problem of what position they should take, and provide them with greatly increased chances of winning government. It would also lend a helping hand to their future, as demographics showed the 'Stay' vote was stronger amongst the young.
I agree. I think supporting an election to determine the path forward would be the best way for Labour to deal with Brexit. Unfortunately Corbyn seems to be supporting Brexit.