Pajama Game concerns the battle over a 7½ cent raise between management and labor at the Sleep-Tite Pajama Factory. Amidst the conflict, a romance ensues between the new superintendent, Sid, and the leader of the Union Grievance Committee, Babe. Not surprisingly, their romance is all the more difficult given their opposing sides in the labor dispute. Eventually, management agrees to the raise, and peace reigns in the factory as well as in Sid and Babe's love life.