(Reuters) - German top industrial union IG Metall will demand a 7% pay rise over a 12-month period from Volkswagen at wage negotiations in October, the union said in a statement on Friday.

The talks concern a collective agreement for around 120,000 employees across six company sites in Lower Saxony and Saxony Anhalt states including Wolfsburg, where Volkswagen is headquartered, IG Metall added.

IG Metall earlier this week advised its members to also demand a 7% raise in a wider round of collective bargaining for the mechanical engineering sector that does not include VW, well above the current inflation rate.