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In a medium-sized manufacturing company, the annual budget planning meeting brings together the management team and staff representatives. Maria, the head of finance, emphasises the
In a medium-sized manufacturing company, the annual budget planning meeting brings together the management team and staff representatives. Maria, the head of finance, emphasises the need to reduce operational costs by 10% to stay competitive in the market. This includes cutting labour costs, which Maria believes is essential for the company's financial health. Jabu, the union representative, immediately objects, arguing that reducing labour costs means cutting wages and benefits for the workers, which the union cannot support. Thandi, the HR manager, adds that employee well-being and motivation are crucial for productivity, and cutting wages would demoralise the workforce. Mohammed, the operations manager, while understanding the need to reduce costs, believes that investing in new machinery is also critical. He argues that outdated machinery frequently causes delays and hampers production, and without these investments, the company's productivity will continue to suffer. Sally, the senior engineer, agrees with Mohammed, noting that the current outdated machinery negatively impacts efficiency and that technological upgrades are necessary to maintain competitive operations. On the other hand, Lindiwe, a production line worker, expresses concern that cutting wages will lead to decreased morale and productivity on the floor. She believes that fair wages and good working conditions should be prioritised. What is the primary cause of conflict in the scenario ab
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