Employees of Stark Industries have gone on strike. Tony's staff point to a compelling figure called Gene Kahn who has been passing out pamphlets calling Stark a communist. Stark calls Kahn and learns that his union will be representing the striking workers. As Tony tries to prepare a strategy, Pepper Hogan arrives asking for a job: Tony agrees to let her be his personal secretary again. Tony becomes Iron Man to deal with the strikers, but soon realizes there is little he can do and drops in on Gene Kahn instead. Bursting into Kahn's office, he recognizes him instantly as the Mandarin. The Mandarin sends guards to battle Iron Man, but he swiftly beats them. The Mandarin battles Iron Man himself and seems to be more powerful than before thanks to his headband. Finally, the Mandarin unveils his new ally, the "eleventh ring" — the Unicorn!