This ariticle concerns the contradictions between the segmentationist approach to the analysis of the labor market and the orthodox radical contention that all or most wage and salary earners belong to the same social class. Labor market segmentation implies priviliges, and these, in turn, provide for class alliances aimed at perpetuating segmentation. Here the crucial class division within the labor market is seen as located along the manual-nonmanual occupational divide. The concepts of equalizing pay differentials, noncompeting groups, and barriers to education are used to show that the nonmanual working class has a strong incentive to form alliance with capital, at least as long as benefits which might derive from different alliances remain unspecified. pg 259-285