Tillsonburg Community Living will meet its pay equity obligations.
Unionized staff will receive a one-dollar and 60-cent an hour increase this year, which is mandated under the pay equity act.
TCL CEO Marty Graf says the retroactive increases to current and former employees adds up to about 1.3 million dollars.
The move comes after the Ontario Public Service Employees Union announced it would move legally to force Tillsonburg Community Living to pay 1.5 million dollars in unfunded pay equity liability.
He CLT is expected to self-managed the pay equity increase of about 413-thousand dollars in 2017-2018 by finding more efficiencies.
Graf says it will be 2040 by the time full employee pay equity is achieved, at an annual cost of 1.5 million dollars.
Former Premier Dalton McGuinty stopped funding CLT for pay equity in 2009.