Labor authorities in South Korea have banned the union of GM Korea from going on a planned strike against the automaker’s controversial spin-off plan. 

The National Labor Relations Commission says it decided to issue “administrative guidance” on a walk-out plan by GM Korea’s labor union. Early this month, the union asked the commission to declare “suspension of arbitration,” which would give it the right to collective actions against the company. 

An official at the commission said it judged GM Korea's spin-off plan as not subject to arbitration. 

The union said it would hold a meeting later on Monday to discuss its next steps. 

Last Friday, GM Korea's shareholders approved the establishment of GM Korea Technical Center, an arm that will be separate from the company’s manufacturing units. Its workers suspect the step is a precursor to the U.S. automaker’s eventual departure from the local market and to massive restructuring and layoffs.