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The largest labor union at Japan Airlines Corp. is expected to agree to wage cuts averaging 10 percent for all employees in fiscal 2006, sources close to the union said Tuesday.

“There is now no reason not to enter negotiations” over the pay cut after JAL President Toshiyuki Shinmachi and two other top officials decided to step down from their posts, said one of the sources, who declined to be named. “Reaching an agreement is only a matter of time.”

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