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The federal and Ontario governments increased the pressure on thousands of auto workers at General Motors, Chrysler, Ford and scores of suppliers yesterday to accept concessions in efforts to keep the reeling automakers alive.

In announcing $4 billion in loans to GM and Chrysler, Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty emphasized that in exchange for the money, all stakeholders – including unionized workers – would need to cut costs soon.

Pressure had been building for weeks as the automakers pleaded for public aid. On Friday, the Bush administration announced a $17.4 billion (U.S.) rescue package in exchange for major concessions from auto industry employees there.

Ottawa and the provincial government underlined the need for cuts in labour costs as a condition of the aid packages. They also noted that even with the reductions in those costs, there would be unidentified job losses.

In Canada, that would mean a reopening of contracts and concessions from the tens of thousands of unionized auto workers at GM, Chrysler and Ford.

Ford didn’t seek any immediate aid but it has sought a $2 billion line of credit, if necessary.

Production technicians at the three automakers currently earn $33.90 an hour, including cost of living allowance health insurance companies.

Harper and McGuinty also said the automakers would need reductions in costs from their suppliers. That could affect the wages and benefits of more than 20,000 parts workers who are primarily represented by the Canadian Auto Workers and the United Steelworkers unions.

Many of those workers have already accepted concessions in recent years as the automakers tried to stay competitive against surging foreign-based companies.

CAW president Ken Lewenza said yesterday there would be "pain" but it was difficult to comment on the extent of concessions.

He noted the United Auto Workers union in the U.S. is hoping president-elect Barack Obama will soften conditions for concessions when he assumes power next month and that could affect the situation here.

"The automakers haven’t specifically indicated what they want from us," he said. "But we will be part of any solution to retain our competitive edge in productivity."

Meanwhile, Ontario NDP Leader Howard Hampton, who attended the Harper-McGuinty press conference, told reporters that workers shouldn’t have to bear the brunt of the restructuring.

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