What is the purpose of a "lump-sum payment" in negotiations?

The purpose of a "lump-sum payment" in negotiations is to provide one-time bonuses or payments to employees outside of their regular wages. This type of payment is often utilized during contract negotiations as a means to give employees immediate financial benefit without affecting the base salary structure or ongoing wage scales. It can be particularly appealing in situations where employers want to reward employees for past performance or to bridge wage negotiations without committing to ongoing increases in payroll costs.

Lump-sum payments can serve as a strategic tool that can help settle disputes or improve morale by providing tangible rewards for employees' hard work or sacrifices during tough economic conditions. This method allows negotiators to offer compensation in a way that aligns with budget constraints while still recognizing employee contributions.

Other options relate to aspects of compensation and union activities but do not accurately define the primary purpose of a lump-sum payment. For instance, replacing regular wages would suggest a total shift in compensation strategy, while deducting from future wages and funding union activities do not relate to the intent of providing direct financial rewards.