Sid (John Raitt) has just been hired as superintendent of the Sleeptite Pajama Factory in Cedar Rapids, Iowa. He soon falls for Babe (Doris Day), a worker in the factory and member of the employee union's leadership. At the company picnic they become a couple, but Babe worries that their roles in management and labor will drive them apart. She is correct. The union is pushing for a raise of seven-and-one-half cents per hour to bring them in line with the industry standard, but the factory's manager is giving them a runaround. In retaliation, the workers pull a slow-down and deliberately foul up the pajamas, but when Babe actually sabotages some machinery, Sid fires her.