Allan asks Torgal, an old friend, for help in cleaning up the Steel Syndicate. Of course you decide to tag along and are transported to the Gaslin Caves where Allan joins as a guest union.
Spoiler warning: This section may contain information that could spoil the story line or displays in depth quest or fight details.
Basically it is a race. You have to reach the three running guys and trigger a fight with them. Ignore the Shellflies and Nussknacker and use Timeshift when you are close enough to catch them.
The race starts again when you can't reach them in time.
Note: If you don't mind pulling a Nussknacker or two into the fight, it is possible to initiate a fight with the Syndicate Members, then catch up to the Leader and take him on if you use Timeshift at the very beginning. It is also possible to get both Members and the Leader at the very beginning. Or, if you're careful, you can catch up with Timeshift, wait for it to wear off while you're in engagement range, and then immediately initiate combat: you'll likely avoid everyone but the Leader.
Bug (PC version): After viewing the cutscene, if you push soft reset and then load the autosave file, all the Syndicate Members will stay still and don't even try to run away...
Spoiler warning: This section may contain information that could spoil the story line or displays in depth quest or fight details.
Allan: "Hello, traitor."
Torgal: "Allan. We have not talked in 80 years, and that is how you greet me?"
Allan: "It has only been 80 years. You have gotten too used to the mitra way. 80 years is but a mere minute for us, fool."
Torgal: "You've always grown hostile when you needed to ask a favor. What is it?"
Allan: "Hah! I would never ask you for anything. A group of armed soldiers has appeared, calling themselves the Steel Syndicate. They need to be disposed of. Now. I assumed you would want to tag along."
Torgal: "I see. Most certainly something must be done about them. Rush, will you lend a hand?"
Rush: "Nah, not right now."
Torgal: "Hmph."
Allan: "How the mighty have fallen, Torgal. I'd think that you of all people would know that mitra are selfish and cannot be trusted."
or:
Rush: "Of course!"
Torgal: "I appreciate it."
Allan: "Hmph! Asking a mitra for help... I'll be waiting at the Gaslin Caves."
Upon asking again...
Allan: "This new "Steel Syndicate"' needs to disappear. Don't keep me waiting long."
Torgal: "Will you lend a hand?"
Rush: "Nah, not right now."
Torgal: "Hmph."
Allan: "How the mighty have fallen, Torgal. I'd think that you of all people would know that mitra are selfish and cannot be trusted."
or:
Rush: "Of course!"
Torgal: "I appreciate it."
Allan: "Hmph! Asking a mitra for help... I'll be waiting at the Gaslin Caves."
And with that, we're off to the Gaslin Caves.
Allan: "Busy at work, I see."
Syndicate Leader: "Who goes there!? We are the Steel Syndicate! We bring justice to the world by ridding it of evil and sin!"
Allan: "Justice? Is that what you call it? You're nothing but a bunch of fools."
Torgal: "Though your intentions may be good, we must force you to disband."
Syndicate Leader: "You're Torgal, one of the Four Generals of Athlum. This is perfect. With all the meaningless wars Athlum keeps waging I can't think of a better enemy of destroy! Let's go, men! We're off to destroy that enemy of justice, Athlum!"
Allan: "We must crush them before they reach Athlum. Ignore the weaklings. Come on!"
If they reach Athlum first...
Allan: "I don't remember letting them escape being part of the plan. Athlum is your city, isn't it? If you want to defend it, we have to move faster! Ignore the weaklings!"
After we catch the rogues:
Allan: "You call that a battle of the Steel Syndicate?"
Syndicate Leader: "D-damn, you're strong..."
Allan: "You bring shame to the Syndicate."
Syndicate Leader: "What right do you have to say that!? The organization's purpose is to bring peace to the world. That's what we're doing!"
Allan: "You half-wit! You mitra are all feebleminded."
Torgal: "The Steel Syndicate was created by two sovani. We were but a mere vigilante group. It is not a means to justify your thoughtless and brutal acts of violence. I can't stand by and watch idiots ruin its name."
Syndicate Leader: "W-wait, what you mean? A-are you...? Are you!?"
Allan: "It belongs to us and we're taking it back. Torgal, take out this trash."
And with that, we're back in Royotia.
Allan: "I only have myself to blame for the arrogance of these mitra. Before Athlum was ruled by David, Torgal was taken in as a general to commend his contribution for maintaining public order and peace. But I believed that we could bring peace to the whole world, not just Athlum. The Steel Syndicate grew, but gained nothing but useless soldiers in it for the fame. And now they've become an uncontrollable group of violent warriors slaying everything in sigh, justifying it by throwing around the word "justice." Torgal forcefully disbanded the organization, but its soul lives on. To the trflingly short-lived mitra, 50 years is enough for ideology to become legend—to become convention. My duty is to destroy it all."
Torgal: "There are also realist organizations like the Silver Falcons. Race makes no difference in this matter."
Allan: "But don't forget—the leader of the Silver Falcons is a sovani."
Torgal: "Organizations change with time. Who knows what the Silver Falcons will become? Sovani live longer. That's all."
Allan: "You were always a strange one. The sovani way is to not care about others."
Torgal: "I could say the same to you."
Allan: "Hmph. I merely like the taste of blood. I have no interest in political matters. But I suppose I owe you. If you ever need anything, come to the guild."