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Jack is now the district secretary of the fitters union, and he appoints Matt as his deputy. Les Mallow still wants Jack's job and reveals that his predecessor had agreed to ask for a two-pence an hour pay increase. Jack discovers that the plan was to settle for a penny. Mallow says that Jack must deliver this to keep his job beyond the probationary period. Jack persuades Sir Horatio Manners, now chairman of the large Lewis Bishop shipyard, to concede the extra penny to keep him rather than Mallow as union secretary. But Jack is now in Manners' debt.