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ACCFA V CUGCO

AGRICULTURAL CREDIT AND COOPERATIVE FINANCING ADMINISTRAITON VS CIR DECISION


CONFEREDATION OF UNIONS IN GOVERNMENT CORPORATIONS AND SEP 4 1961 a collective bargaining agreement (effective for 1 year from JUL 1
OFFICES 1961) between UNIONS and ACCFA
NOVEMBER 29 1969 | MAKALINTAL, J o A few months after, UNIONS started protesting against violations and non-
SUMMARY implementation of CBA
ACCFAs administrative machinery was reorganized and it name changed to o OCT 1962 UNIONS declared a strike ended when strikers voluntarily
Agricultural Credit Administration (ACA) under the Land Reform Code (RA 3844). The returned to work (NOV 26 1962)
ACCFA Supervisors Association (ASA) and the ACCFA Workers Associaton UNIONS with mother union (CUGCO) filed complaint against ACCFA for having
(AWA)Unions, are labor organizations composed of the supervisors and the rank committed acts of unfair labor practice, namely violation of CBA in order to
discourage members of UNIONS in exercise of their right to self-organization,
and file employees, respectively, in the ACA.
discrimination against members to matter of promotions and refusal to bargain
o ACCFA: invoked defenses (lack of jurisdiction of CIR, illegality of CBA,
On Sept 1961, a collective bargaining agreement for one year, was entered into by expiration of contract and lack of approval by Office of the President of the
and between the Unions and the ACCFA. After a few months, the Unions started fringe benefits)
protesting for allegations of non-implementation but strikers voluntarily returned to DECISION: Ordered ACCFA to ease and desist from committing acts tending to
work after a while. On Oct 1962, the Unions with its mother union, the CUGCO, filed a discourage members in the exercise of their right to self organization; comply
complaint with the CIR against ACCFA for having allegedly committed acts of unfair with and implement CBA including payment of P30 a month living allowance;
labor practice. The CIR decided in favor of the Unions and the ACCFA moved to bargain in good faith and expeditiously with complainants; DENIED MR
reconsider but failed and file a petition for certiorari in this Court. While the case is ACCFA filed appeal by certiorari issues:
pending, on Aug 1963, the President signed into law the Agricultural Land Reform o Jurisdiction of CIR (depended on WON ACCPA forecited governmental or
Code (RA 3844). On March 1964, the ASA and AWA filed a petition for certification proprietary functions)
election with the CIR praying that they be certified as the exclusive bargaining agents o Validity of CBA (if valid, WON it had already lapsed; if not, WON its fringe
for the supervisors and rank and file employees, in the ACA. The trial court on May benefits are already enforceable)
1964 certified that the AWA and ASA are the sole and exclusive bargaining o Legal and Factual Basis for finding that ACCFA had committed acts of unfair
representatives of the rank and file and supervisors, respectively, in ACA. The labor practice
decision is affirmed by CIR en banc. o Competence of court to enforce CBA even if expired
SC held that ACA is engaged in governmental functions. It was in furtherance of CIR RESOLUTION
such policy that the Land Reform Code was enacted and the various agencies, the During pendency of case, President signed into law Agricultural Land Reform
ACA among them, established to carry out its purposes. There can be no dispute as Code (RA 3844) required reorganization of administrative machinery of ACCFA
to the fact that the land reform program contemplated in the said Code is beyond the and changed its name to ACA
capabilities of any private enterprise to translate into reality. The growing complexities ASA and AWA filed petition for certification election with CIR praying they be
of modern society, however, have rendered this traditional classification of the certified as the exclusive bargaining agents for the supervisors and rank-and-file
functions of government quite unrealistic, not to say obsolete. Ministerial and employees in ACA
governmental functions continue to lose their well-defined boundaries and are
ORDER: certified ASA and AWA as the sole and exclusive bargaining
absorbed within the activities that the government must undertake in its sovereign
representatives [AFFIRMED BY CIR EN BANC]
capacity if it to meet the increasing social challenges of the times and move towards a
ACA filed petition for certiorari with urgent motion to stay the CIR order
greater socialization of economic forces. Corollarily, the Union is thus not entitled
[DISMISSED] BUT later reconsidered when ACA complied with formal
to a certification election.
requirement stated in resolution [ORDERED CIR TO STAY EXECUTION OF
ORDER]
FACTS
IN PRESENT APPEAL
2 separate appeals by certiorari of Court of Industrial Relations (CIR) decision (MAR
ACA: challenges the jurisdiction of CIR to entertain petition for certification
25 1963) and resolution (MAY 21 1964)
election; ACA engaged in governmental functions
ACFFA was a government agency created under RA 821
UNIONS: ACA performs proprietary functions
o Its administrative machinery was reorganized and its name changed to
Agricultural Credit Administration (ACA) under the Land Reform Code (RA
ISSUES
3844)
1. WON the ACA is a government office engaged in governmental and
ACCFA Supervisors Association (ASA) and the ACCFA Workers Association
proprietary functions? YES
(AWA) [UNIONS] are labor organizations composed of the supervisors and the
rank-and-file employees, in the ACFFA (now ACA)
Sec 8 Agricultural Land Reform Act ACA was established to extend credit and The land reform program contemplated in said Code is beyond the capabilities of
similar assistance to agriculture any private enterprise to translate into reality
Implementation of policy is spelled out in Sec 110-118 inclusive of the Land PURELY GOVERNMENTAL FUNCTION
Reform Code The law itself declares that the ACA is a government office, -with the formulation
IMPLEMENTATION OF LAND REFORM PROGRAM OF GOVERNMENT of policies, plans and programs vested no longer in a Board of Governors, as in
ACCORDING TO RA 3844 IS GOVERNMENTAL, NOT PROPRIETARY FUNCTION the case of the ACCFA, but in the National Land Reform Council, itself a
EO 75 PLACES ACA UNDER THE LAND REFORM PROJECT government instrumentality; and that its personnel are subject to Civil Service
ADMINSTRATION laws and to rules of standardization with respect to positions and salaries, any
Appointing authority in respect of officials and employees of ACA is the vestige of doubt as to the governmental character of its functions disappears.
President of the Philippines (stated 1st indorsement by his office to Chairman of
National Reform Council. 2. WON UNIONS ARE ENTITLED TO THE CERTIFICATION ELECTION? NO
When Agricultural Reform Code was being considered by Congress, the nature CERTIFICATION = for purposes of bargaining in behalf of the employees with respect
of ACA was the subject of the exposition on the Senate floor SEN TOLENTINO to terms and conditions of employment, including the right to strike as a coercive
[ACA not a profit making institution public service] SEN MANGLAPUS [P150M economic weapon as in fact the said union did strike agasint ACCFA
is appropriated for ACA to intensify credit operations in barrio level THUS ACA CONTRARY to Sec 11 RA 875 Prohibition Against Strike in the Government
will concentrate entirely on facilitation of credit on barrio level] The terms and conditions of employment in the Government inciting after political
subdivision or instrumentality thereof, are governed by law and it is declared to
CONSIDERATIONS MENTIONED MILITATE AGAINST RECOGNITION OF be the policy of this Act that employees herein shall not strike for the purposes of
COLLECTIVE BARGAINING PWOERS OF UNIONS WITHIN CONTECT OF RA 875 Concurring changes or modification in their terms and conditions of employment
HENCE, AGAINST GRANT OF THEIR BASIC PETITION FOR CERTIFICATION Such employees may belong to any labor organization whom does not impose
ELECTION AS PROPER BARGAINING UNITS the obligation to strike or to join In strike: Provided, However, that this action shall
apply only to employees employed in governments, functions, of the Government
THE ACA IS A GOVERNMENT OFFICE OR AGENCY ENGAGED IN including but not limited to governmental corporations
GOVERNMENTAL, NOT PROPREITARY FUNCTIONS
With the reorganization of the ACCFA and its conversion into the ACA under the
TRADITIONAL CLASSIFICATION [PRESIDENT WILSON] Land Reform Code and in view of our ruling as to the governmental character of
CONSTITUENT MINISTRANT the functions of the ACA, the decision of the respondent Court dated March 25,
Those relating to the maintenance of Exercised by the State to promote the 1963, and the resolution en banc affirming it, in the unfair labor practice case filed by
peace and the prevention of crime those welfare, progress and prosperity of the the ACCFA, which decision is the subject of the present review in G. R. No. L-21484,
regulating property and property rights, people has become moot and academic, particularly insofar as the order to bargain
those relating to the administration of collectively with the respondent Unions is concerned.
justice and the determination of political Exercise of which is optional on the part
duties of citizens, and those relating to of the government RE: FRINGE BENEFITS
national defense and foreign relations Since UNIONS have no right to the certification election sought by them nor,
consequently, to bargain collectively with the petitioner, no further fringe benefits may
Exercised by the State as attributes of be demanded on the basis of any collective bargaining agreement.
sovereignty
The growing complexities of modern society have rendered traditional WE HOLD, THEREFORE, that insofar as fringe benefits already paid are concerned,
classification of functions of government QUITE UNREALISTIC, not to say there is no reason to set aside the decision of the respondent Court. but that since the
obsolete. respondent Unions have no right to the certification election sought by them nor,
consequently, to bargain collectively with the petitioner, no further fringe benefits may
The areas which used to be left to private enterprise and initiative and which the be demanded on the basis of any collective bargaining agreement.
government was called upon to enter optionally, and only "because it was better
equipped to administer for the public welfare than is any private individual or group of
individuals," continue to lose their well-defined boundaries and to be absorbed within
activities that the government must undertake in its sovereign capacity if it is to meet
the increasing social challenges of the times.

IN CASE AT BAR, it was in furtherance of such policy that the Land Reform
Code was enacted and the various agencies, the ACA among them, established
to carry out its purposes.