Matt's position as union district secretary is threatened by Eddy Morton. In an attempt to show Matt up, Eddy tells Matt that Manners has done a deal with Friedrich von Peltzer, the duke's German nephew. As this could mean his members lose jobs to Germany, Matt threatens strike action unless the deal is cancelled. Matt wins the vote to confirm him in his job, but then makes Eddy his deputy, aware from Billy that he is terminally ill. Dolly persuades Tom to leave the duke's estate so she can run Bill's new shop.