UPDATE 1-Magna says job cuts likely in case of labor strike

(Adds CFO quote from conference call in paragraph 3)

Aug 9 (Reuters) - Canadian auto-parts maker Magna International said on Wednesday it was prepared to consider laying off staff in the short term to combat disruptions in case of a strike by United Auto Workers (UAW) union at the Detroit Three carmakers.

UAW has been in negotiations with the carmakers - Ford Motor , General Motors and Stellantis - on double-digit pay increases and defined-benefit pensions for all workers.

"We have prepared for a scenario of shutdown locations, including moving around non-essential work and beyond that we're looking at laying off people in the short term," Magna Chief Financial Officer Patrick McCann said at a JPMorgan auto conference.

Parts supplier Aptiv PLC has also said its business can adjust down in the event of a labor disruption.

Magna also warned that while chip supply and margins have improved over the months, the levels are still well below those in 2019.

Last week, the company raised its annual forecasts on solid demand for auto parts.

(Reporting by Raechel Thankam Job; Editing by Shinjini Ganguli)