Per our 2018 Basic Labor Agreement, Inflation Recognition Payments (IRPs) will be made in lump sum, quarterly payments if cumulative inflation exceeds 3% per year.
At the end of each calendar quarter, the Consumer Price Index (CPI) will be compared to a Consumer Price Threshold. If the actual CPI is higher than the CPI Threshold, a lump sum payment shall be made equal to each full 1% by which the CPI is higher than the threshold.
In the first quarter, the CPI averaged 2% higher than the threshold, which will grant us a lump sum payment for this quarter.