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What is the significance of Scabby in union and labor protests as mentioned in the article?

Scabby is a giant inflatable rat famously used by trade unions to protest unfair practices and layoffs. Bethesda workers erected Scabby to make a clear, unignorable statement to Xbox leadership about the impact of recent layoffs and to signal union opposition to those actions. Answered

Xbox CEO welcomed with giant rat, layoff graveyard in visit to Bethesda offices
Could the protest lead to legal or union action aimed at reversing recent layoffs or addressing working conditions?

Yes. The primary article notes that union members with the IWGB are set to gather and voice discontent at the protest, and it references ongoing lawsuits and a "legal battle with employees" involving Build a Rocket Boy, indicating the protest could lead to legal or union action aimed at addressing layoffs or working conditions. Answered

MindsEye studio faces developer protest after flying in fans for a party despite 400 layoffs