What the labour party needs to do is actually come down on immigration. This isn't up for debate for the working class. They do NOT want to be continuously displaced and have to deal with endless waves of 600,000 migrants each year. There is no way you will persuade them to support this.
Labour is stuck in a tricky position because their actual ideology is one of mass immigration and middle class idealistic leftism, which is pretty much the opposite of what the working class support. The working class are left wing on issues like the NHS and taxation, but overwhelmingly right wing on immigration. Supporting endless migration is very much part of the belief system of the more middle class, idealistic labour voter.
Labour know this and so have to pretend to be against immigration in order to carry on getting the working class vote. Many working class people see through this and vote for UKIP instead. UKIP are not socially left wing on policies like the NHS and taxation, but many of these working class people still vote for them because stopping mass immigration is that important for them.
Labour needs to either come down hard on immigration and get back the working class vote at risk of alienating the idealistic middle class, or admit that they support mass immigration and thus lose the working class vote but maintain support of the middle class idealists. They cannot do both.
That's why we saw Miliband with his whole "controls on immigration" shtick. He knew that what he was saying was nonsense. There cannot be controls on immigration if you are a member of the EU, and further, the metropolitan labour types don't want there to be controls on immigration.
The truth is that the labour party is the party of metropolitan idealists, muslims, and immigrants. They do not care about the working class yet cynically claim to be against immigration in order to get their votes, while simultaneously supporting mass immigration and the endless waves of 600,000 migrants we get each year.
This is the divide that can't be reconciled.