UPDATE 1 — German union threatens retaliation as Volkswagen plans termination of wage agreements

(Adds no comment from company, sources on contracts, background) By Rachel More HANOVER, Germany, Sept 30 (Reuters) — Germany's top industrial union IG Metall threatened an escalation in its dispute with Volkswagen over German job cuts on Wednesday, after the carmaker said it plans to terminate a number of wage agreements, according to a union statement. "IG Metall and the works council have announced their opposition. A heated confrontation is looming at the turn of the year," the statement said. Labour representatives are holding talks with management in Hanover over the biggest overhaul in the German auto group's history. Strikes are possible from January 1. A company spokesperson had no immediate comment on the statement. Both Volkswagen and IG Metall are expected to give statements after the talks. Volkswagen could terminate parts of VW's system of collective bargaining agreements, including an umbrella wage agreement covering some 100,000 workers at its main German plants, although a landmark 2024 deal is not up for debate, according to sources involved in the talks. This could force renegotiation of certain labour standards as Volkswagen aims to drastically reduce costs..