Don encourages Ivy to form a workers co-operative, undercutting Mike. While taking Don's advice Ivy manages to get Marg, Josie and Emily to join up and Ingram gives the co-op the order for1,000 bags. Audrey refuses to let Alf buy one of the new houses - she wants to move away from the street. Johnny arrives a No. 11 and tells Jim he is going after the recruitment job.