The radio station staff is in an uproar after Kate nixes their annual fivepercent raises. Frasier finds himself leading the employees’ revolt, even though he and the rest of the on-air talent are unaffected by the decision.

It’s up to Frasier to confront “the Nazi in nylons” and hammer out a deal for the staff. But the negotiation takes an unexpected turn when Frasier and Kate discover an untapped, animal-like passion for each other. He leaves her office without an agreement -- but with a lipstick-streaked face!

Surprised by his attraction to Kate, Frasier seeks the advice of Daphne, Niles and Martin. They convince him that Kate is just using him t o get w hat she wants, but when Frasier questions her motives, she accuses him of the same thing. Soon, they find themselves once again locking lips, and discuss the raises during breathing breaks. Fortunately for the employees, their lusty twist on labor relations renders the staff triumphant.