Chicago, Ill. - Mondelez International, the maker of Oreos and Chips Ahoy cookies, started talks on Friday with its labor unions to decide whether a bakery on Chicago's South Side or a plant in Mexico gets a major upgrade.

At stake is a $130 million investment to install four new state-of-the-art manufacturing lines that would make Nabisco cookies and crackers, Mondelez spokeswoman Laurie Guzzinati said.

Mondelez officials will make their investment decision based on "a variety of factors" after the company's discussions with the unions, she said, declining to provide further details.

Guzzinati declined to say whether Mondelez is seeking job cuts, pay concessions or other changes in its union contracts.

The unions at the Chicago plant, 7300 S. Kedzie Ave., are Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Local 300, with about 1,000 members; International Association of Machinists and Aerospace Workers District 8, representing about 105 employees; and International Union of Operating Engineers Local 399, which represents about 70 workers.

Karl Sarpolis, a Machinists union business representative who worked at the plant for nearly 30 years, said last week that the Chicago plant, though downsized through technology, remains an important part of the company's production and distribution business. "All three unions have a very good work ethic; we have a good reputation there," he said.