Marama Fox says those who handled the sexual misconduct allegations at the Young Labour camp should be fired.
The party's leadership has been criticised this week for not immediately offering support to the victims or informing their parents.
Four teenagers were allegedly harassed or assaulted by a 20-year-old man at Young Labour's summer camp in Waihi last month.
The party did not inform the police, the Prime Minister or the alleged victims' parents about the incidents.
Former Māori Party co-leader Ms Fox says heads should roll.
"Those people then went to cover it up and did not inform parents that their children had been sexually abused on a Labour Party camp should be sacked," she told The Hui on Sunday.
"All of these things if we don't ignore them and act on them, perpetuate this behaviour to continue."
Labour says neither president Nigel Haworth nor party secretary Andrew Kirton will lose their jobs. Neither were present at the camp in Waihi.
Ms Fox says the Prime Minister did the right thing by addressing the issue.
At least one of the alleged teenage victims has asked for an investigation.