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

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

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

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

FRANKFURT, Oct 12 (Reuters) - German trade union IG Metall aims to strike a labour deal with Opel several days before parent General Motors publishes its third quarter results as the loss-making brand looks to restructure its domestic operations.

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

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

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

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

The company was not immediately available for comment.

Management had said that month that it planned to cease manufacturing vehicles in its factory in Bochum, Germany, as soon as the lifecycle of the Zafira Tourer MPV expired, two years later than the 2015 target it had previously planned.

Morgan Stanley analyst Adam Jonas said last month that GM needs to sell Opel after dwindling sales and deteriorating pricing have meant GM lost about $16 billion in Europe over the past dozen years. Jonas forecasts another $1 billion in annual operating losses for Opel on average through 2021.

GM has thrown its weight behind a restructuring of its loss-making German business as well as an alliance with France's PSA , however, rather than opting for a sale or closure.

(Reporting By Christiaan Hetzner)

((christiaan.hetzner@thomsonreuters.com)(+49 - 69 - 7565 1249)(Reuters Messaging: christiaan.hetzner.thomsonreuters.com@reuters.net))