Schindler took over his factory, Emalia, from a bankrupt Jewish businessman and dedicated it to manufacturing pots and pans, exploiting both Polish gentiles and Jews at low wages. One of the latter is Moshe, who is one of the first Jews that Schindler hires. Although Moshe earns little, working for Schindler provides him with a measure of security that he didn’t have before, and Schindler increasingly respects his skills as an employee. 

Meanwhile, Leon befriends some teenage Nazi soldiers at their guard station, but when they discover that he is Jewish, they break into his apartment and slap him. 

In May of 1940, the Nazis begin to force the Jewish population out of Kraków. Many of the city’s Jews leave for the countryside and towns; Leon’s parents try to put a positive spin on the events, but there are rumors that the Germans are sending Jews to death camps. Leon’s family is able to stay in Kraków because of his father’s work permit.

In 1941, the Nazis establish a ghetto in Kraków to confine the city’s Jews. Leon’s family moves into a one-room apartment in the ghetto, which they share with another family, the Luftigs.