German auto giant Volkswagen has rejected union demands for pay increases and instead threatened cost cuts during initial collective bargaining negotiations with labour leaders on Wednesday. Labour leaders said VW bosses also refused to provide more details about possible mass layoffs and plant closures that have been threatened by VW management as part of austerity efforts in recent weeks. “Instead of cost burdens, we need cost relief,” said VW’s head of human resources, Arne Meiswinkel, who is acting as lead negotiator for management. “This will also require a contribution from the employees…