TORONTO - Negotiators are making progress on an aid package for automakers but that doesn't guarantee the industry won't shed jobs and come out of the economic crisis smaller, Premier Dalton McGuinty said Wednesday.

While the Ontario government is doing everything it can to guarantee job security will be part of any aid package it can't make promises, McGuinty said when pushed in the legislature on the issue.

"I wish I could provide the assurance the leader of the NDP is seeking on behalf of those families," McGuinty said in response to a question from New Democrat Leader Andrea Horwath.

"Ultimately, the decision as to how many Ontarians will be employed in this sector will be the outcome of negotiations between management and labour."

The government's focus, he added, is on maintaining the current level of production rather than specific jobs.

Members of the Canadian Auto Workers union, in voting Tuesday and Wednesday, approved a new cost-cutting contract with General Motors by 87 per cent. It includes a wage freeze to September 2012, the elimination of an annual bonus and a reduction in paid time off, among other concessions.

"These changes are difficult for our members and retirees, but CAW members at GM agree that accepting these changes is the best choice under the circumstances," CAW president Ken Lewenza said in a release Wednesday night.

The contract is contingent on GM winning federal and provincial support. It's also dependent on a promise that Detroit-based parent General Motors Corp. will maintain 20 per cent of its total North American manufacturing volume in Canada.

"These workers are making incredible sacrifices... They and their families want assurances that their sacrifices are not for naught," Horwath said in the legislature.

Ontario and Ottawa have been working with GM and Chrysler to bang out an aid package to help the companies survive the economic downturn.

While Federal Industry Minister Tony Clement expressed doubt that concessions by the union or even an increase in Canadian purchases will help, his Ontario counterpart said Clement is "encouraged by what's taken place and there's no divergence of opinion."

"What he has said is... there's more to be done -- not with respect to the labour-management agreement, but rather with respect to the agreement as a whole," Economic Development Minister Michael Bryant said Wednesday.

Clement said the recovery of the Canadian auto industry depends on American consumers, who buy most of the vehicles produced at Canadian car plants, and he also called the cost-cutting deal at GM just "one piece of the puzzle."

Without directly criticizing Clement's comments, McGuinty said politicians will continue to voice various opinions on the file but what really matters is what happens at the negotiating table.

GM and Chrysler have until March 31 to finalize restructuring plans, including deals with the union, in order to get access to the financial aid that has been promised by the two levels of government.