Norma Rae Wilson, portrayed by Sally Field, toils away at the O.P. Henley Textile Mill during the summer of 1978. As she enjoys lunch with her friend and fellow worker, Bonnie Mae (Gail Strickland), their conversation takes an uncomfortable turn. Bonnie Mae casually remarks on another friend’s impressive car, prompting a sharp, evasive response from Norma about recent events in her life. She is deeply concerned about her mother, Leona (Barbara Baxley), who suffers from severe hearing loss. Desperate for help, Norma takes her mother to the doctor, who can only provide a bleak outlook on her situation. As they grapple with personal hardships, Norma is reminded of the dire working conditions at the mill.
Eventually, Norma's home life is disrupted further when Ron Leibman, portraying labor organizer Reuben Warshovsky, arrives seeking to unite the workers. Her father, Vernon (Pat Hingle), reacts suspiciously to Reuben, suspecting him of ulterior motives. Nevertheless, Norma soon finds herself pulled into Reuben's cause after a violent confrontation with her lover, George. When Reuben offers comfort, the two begin to establish a connection amidst the turmoil surrounding them.
As the narrative unfolds, Norma's dedication to improving conditions at the mill grows. Reuben challenges the dangerous practices that the employees face daily, leading to their collaborative efforts to unionize. The intensity of their struggle weighs heavily on Norma, who faces opposition not only from management but from her own family. Amid personal sacrifices and social tensions, she vows to fight against a system that exploits workers.
Over time, Norma's efforts culminate in a secretive meeting at her home, where workers of different races come together to discuss their plight and the possibility of forming a union. This bold move leads to escalating tensions within the community, culminating in fights and demonstrations that put Norma’s very safety at risk.
In a climactic scene, Norma stands defiantly in the mill, clutching a sign that reads "UNION!" as fellow workers join her in solidarity, creating a poignant moment of unity against oppressive management. However, her stand leads to her arrest for disorderly conduct, prompting a reflection on her choices and the implications for her children's future.
Following her release, Norma gathers her children and explains her actions, instilling in them the values of hard work and integrity. The countdown to the union vote arrives, igniting passions and emotions among the workers. Ultimately, the results bring a glimmer of hope as the union receives majority support.
The journey culminates with a heartfelt exchange between Norma and Reuben following the successful vote, as they acknowledge their shared experiences and what lies ahead. Their bond, complicated yet genuine, leaves Norma standing at the crossroads of her past and the promise of a better life for her family, as she embraces the opportunity to live freely, advocate for justice, and continue her fight for workers' rights.