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UPDATE 1-German union aims for Opel labour deal by Oct. 26

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* IG Metall calls on Opel to rule out layoffs beyond 2016

* Opel can only defer wage hike til Oct. 31 if no dealagreed

* Parent GM to publish Q3 results on Oct. 31(Adds details, background)

FRANKFURT, Oct 12 (Reuters) - German trade union IG Metallaims to strike a labour deal with Opel several days beforeparent General Motors publishes its third quarter resultsas the loss-making brand looks to restructure its domesticoperations.

"The plan is to achieve a result by Oct. 26," IG Metall saidin a letter on Friday to the 20,800 Opel employees in Germany.

GM will post results on Oct. 31, which is also the last dayto which Opel can defer paying out a 4.3 percent industry-widewage hike to its German workers if it has not yet agreed a newlabour deal with IG Metall.

For the first time, the union is now openly calling formanagement to rule out compulsory redundancies through 2016 "andbeyond" as part of a possible deal.

According to IG Metall, Opel signalled it was prepared tosign a labour deal that would extend past the current horizon ofits mid-term business plan approved late in June, which laststhrough 2016.

The company was not immediately available for comment.

Management had said that month that it planned to ceasemanufacturing vehicles in its factory in Bochum, Germany, assoon as the lifecycle of the Zafira Tourer MPV expired, twoyears later than the 2015 target it had previously planned.

Morgan Stanley analyst Adam Jonas said last month that GMneeds to sell Opel after dwindling sales and deterioratingpricing have meant GM lost about $16 billion in Europe over thepast dozen years. Jonas forecasts another $1 billion in annualoperating losses for Opel on average through 2021.

GM has thrown its weight behind a restructuring of itsloss-making German business as well as an alliance with France'sPSA , however, rather than opting for a sale orclosure.

(Reporting By Christiaan Hetzner)

((christiaan.hetzner@thomsonreuters.com)(+49 - 69 - 75651249)(Reuters Messaging:christiaan.hetzner.thomsonreuters.com@reuters.net))

Keywords: OPEL GM/UNION