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After nightlong negotiations with Tokyo Gov. Shintaro Ishihara, members of the Tokyo Metropolitan Government workers’ unions agreed Wednesday to a two-year pay cut of 4 percent across the board and to cancel its two-hour strike planned the same day.

The agreement ends the standstill between the metro government and the unions over the city’s proposed restructuring plan announced in September. Talks stalled early this month when union leaders refused to negotiate, demanding a complete cancellation of the plan and holding an hourlong strike Friday.

The proposed plan called for cuts through fiscal 2002 and for reducing annual bonuses 10.5 percent over the next three years. Union members agreed to the 4 percent cut through fiscal 2001 and to bonus cuts of 5.7 percent in fiscal 1999 and 8.6 percent in fiscal 2000.

The city agreed to an additional 5 percent to 10 percent pay cut for management officials from fiscal 2000 to 2001. Along with the salary and bonus reductions, these bring total projected savings in metro coffers to 150 billion yen.

The metro government agreed to extend for two years the pay cuts for the governor and other high-ranking officials through fiscal 2001. Ishihara is now taking a 10 percent salary cut and 50 percent bonus cut.

The metro government’s deficit is forecast to surge to 620 billion yen in fiscal 2000.

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