A strike is imminent at the Sleep-Tite Pajama Factory. The Union is seeking a wage rise of seven and a half cents an hour. Sid and Babe are in opposite camps yet a romance is born between them. At first Babe rejects him and Sid is forced to confide his feelings to a dictaphone. During the picnic for the factory workers he makes better progress but their estrangement is reinforced when they return to the factory. A go-slow is staged by the Union, strongly supported by Babe. Sid, as factory superintendent, demands an 'honest day's work' and threatens to fire slackers. Babe is enraged by his attitude and kicks her foot into the machinery, causes a general breakdown and is immediately fired by Sid. Hines, the popular efficiency expert, is in love with Gladys the President's secretary. Periodically, he brings a more optimistic outlook to the life of the factory. Becoming convinced that Babe's championship of the Union is justified, Sid simulates an interest in Gladys by taking her out for the evening to the night club, Hernando's Hideaway. Through her help he is eventually able to gain access to the firm's books and discovers that the boss has been adding to his price the pay increase demanded by the workers. Sid then brings about his boss, Hasler's, consent to a pay rise and is able to bring peace to the factory and to his love life. Everyone goes out to celebrate - at Hernando's Hideaway.