Supreme Court held Art. 23(1)§2 of Labor Code prevails over contract terms regarding employee status after partial factory takeover.

The Supreme Court dismissed the extraordinary review by the Court of Appeal, upholding the lower court's finding that employees automatically transferred to the acquiring cooperative under Article 23(1)§2 of the Labor Code. The plaintiffs argued they remained with the original cooperative, but the court found factual evidence proving the partial takeover occurred on July 1, 1991, making the new entity the employer. The court ruled that the statutory obligation to maintain employment status overrides any contrary agreement between the cooperatives, thereby protecting the special labor rights of the transferred workers.