Jichiro, the All-Japan Prefectural and Municipal Workers' Union, opened a two-day special convention Thursday in Tokyo to discuss how to rebuild the organization in the wake of a tax evasion scandal involving former executives and the revelation of massive off-the-book debts.

Leaders of the nation's largest labor union proposed at the meeting that the union try to repay some 3.9 billion yen in debts over five years. It also proposed to carry out 10 percent pay cuts for executives of both the union and its affiliate mutual aid society and 5 percent pay cuts for employees from March until February 2005.

The officials also demanded that Jichiro executives who resigned from their posts after September 1990 donate at least 200,000 yen for each year they served.