Employment impact uncertain in General Mills modernization. (General Mills Inc.) (Food Companies Put Money Where Their Mouths Are)

General Mills Inc. plans a $14 million modernization of its Buffalo breakfast cereal plant and has begun talks with its union on job cuts that may result from the upgrade, labor sources said.

Officials at General Mills declined to comment, but the automation is part of an ongoing company effort at its plants. Analysts and union officials say the Buffalo investment appears to be on a larger scale than similar efforts at other company locations.

"They're putting in more modern systems and restructuring their lines," said Kenneth Mulhisen, business agent for Local 36 of American Federation of Grain Millers.

The plan, and talks about possible job cuts, came to …