The conflict started with the death of an Elite Ultra, who was patrolling the Mausoleum of the Arbiter. This particular Elite, who's name is lost to history, had a bad reputation for physically abusing Grunts who fail in their particular tasks, and when fifteen Grunts accidently tipped over a barrel of cleaning fluid, the Elite fired upon them with his Fuel Rod Gun in rage, killing six of the Grunts before the others swarmed him and beat him to death with various cleaning materials. Nearby Grunts in the area rose up to defend their friends and soon all the Elite guards in the Mausoleum were slain.
The Grunts of High Charity soon rose up bit by bit, and before long the entire city was swarmed with angry Grunts desperate to revenge, respect and revolution. The construction yards of the city were the first to fall, the production lines of the Covenant War Machine were sabotagued by Grunt Workers, leaving the Loyalist Elite army with depleted resources, weapons and armour. The Grunts even managed to increase the manufacture of Grunt armour so that their forces could be armed and armoured. Before long, the rage of the Grunts overpowered the Naval Shipyards and the Grunts finally had a fleet. Not only that, but the Grunts that were already on the ships of the Covenant made short work of the engines and weapon systems, meaning that half of the Covenant Fleet was sabotagued by Grunt Engineers.
The tide turned against the Covenant completely when one of their flagships, after being striken by a Grunt sabotague attack, plummeted into the city of High Charity and destroyed one of the towers next to the Mausoleum of the Arbiter, wiping out an entire platoon of Loyalist forces and bringing the Covenant Army to its knees. Nearing victory, the Grunt forces had already attacked and killed twelve Minor Prophets and the majority of the Elite leadership had died in battle. Nearly one third of the Covenant forces had been annihilated and the Grunts had almost completely armed their forces, creating an army that was nearly five times the size of the Covenant force. Desperate, the Covenant summoned an Arbiter to lead their forces, and the Arbiter came up with a serious plan to end the rebellion.
He took some of the Covenant ships to Balaho, the homeworld of the Grunts, and threatened to glass the planet entirely if the Grunts did not surrender. The Grunts themselves, after having their fleet completely annihilated by the Covenant, realised that they were actually beginning to lose the war. They surrended to save their homeworld, and the battered Covenant Army decided to intergrate the Grunts into their forces as weapon-carrying cannon fodder. The Elites immediatly took to the Grunts, as they show respect for forces that show such prowess in combat.
Though they fought bravely for their freedom and increased respect, after they were defeated by the armies of the Covenant, Some Grunts didn't like this truce, and thus the seeds for the creation of the Heretics were sown. The resentment that they passed on to the next generation was then passed on and on until entire legions of Grunts lept at the chance to rebel again when Pretzel King reared his head.