Author: Apacible

ACCFA v CUGCO G.R. No. L-21484. November 29,

1969. PROVISION:

Petition: Certiorari Section 11 of Republic Act No. 875 (AN ACT TO

Petitioner: THE AGRICULTURAL CREDIT and PROMOTE INDUSTRIAL PEACE AND FOR OTHER
COOPERATIVE FINANCING ADMINISTRATION PURPOSES), which provides:
(ACCFA)
Respondents: ACCFA SUPERVISORS' “SEC. 11. Prohibition Against Strike in the Government.
ASSOCIATION, ACCFA WORKERS' ASSOCIATION, — The terms and conditions of employment in the
and THE COURT OF INDUSTRIAL RELATIONS Government, including any political subdivision or
Ponencia: J. Makalintal instrumentality thereof, are governed by law and it is
declared to be the policy of this Act that employees
therein shall not strike for the purposes of securing
DOCTRINE: Government; functions; unincorporated changes or modification in their terms and conditions of
employment. Such employees may belong to any labor
FACTS: organization which does not impose the obligation to
strike or to join in strike: Provided, However, that this
1. The Agricultural Credit and Cooperative section shall apply only to employees employed in
Financing Administration (ACCFA) was a governmental functions of the Government including
government agency created under Republic Act but not limited to governmental corporations.”
No. 821, as amended. Its administrative
machinery was reorganized and its name RULING + RATIO: No. Unions have no right to the
changed to Agricultural Credit Administration certification election sought by them nor, consequently,
(ACA) under the Land Reform Code (Republic to bargain collectively with the petitioner, no further
Act No. 3844). On the other hand, the ACCFA fringe benefits may be demanded on the basis of any
Supervisors' Association (ASA) and the ACCFA collective bargaining agreement.
Workers' Association (AWA), hereinafter
referred to as the Unions, are labor The power to audit the operations of farmers'
organizations composed of the supervisors and cooperatives and otherwise inquire into their affairs, as
the rank-and-file employees, respectively, in the given by Section 113, is in the nature of the visitorial
ACCFA (now ACA). power of the sovereign, which only a government
2. On September 4, 1961 a collective bargaining agency specially delegated to do so by the Congress
agreement, which was to be effective for a may legally exercise.
period of one (1) year from July 1, 1961, was
entered into by and between the Unions and the Moreover, the ACA was delegated under the Land
ACCFA. A few months thereafter, the Unions Reform Project Administration, a government agency
started protesting against alleged violations and tasked to implement land reform. There can be no
non-implementation of said agreement. Finally, dispute as to the fact that the land reform program
on October 25, 1962 the Unions declared a contemplated in the said Code is beyond the capabilities
strike, which was ended when the strikers of any private enterprise to translate into reality. It is a
voluntarily returned to work on November 26, purely governmental function.
1962.
3. On October 30, 1962 the Unions, together with Given these, the respondent Unions are not entitled to
its mother union, the Confederation of Unions in the certification election sought in the Court below. Such
Government Corporations and Offices certification is admittedly for purposes of bargaining in
(CUGCO), filed a complaint with the Court of behalf of the employees with respect to terms and
Industrial Relations against the ACCFA for conditions of employment, including the right to strike as
having allegedly committed acts of unfair labor a coercive economic weapon, as in fact the said unions
practice, namely: violation of the collective did strike in 1962 against the ACCFA.
bargaining agreement in order to discourage the
members of the Unions in the exercise of their
right to self-organization, discrimination against DISPOSITION: Petition for certiorari is DISMISSED.
said members in the matter of promotions, and
refusal to bargain.
4. The CIR in its decision dated March 25, 1963
ordered the ACCFA:
a. To cease and desist from committing
further acts tending to discourage the
members of complainant unions in the
exercise of their right to self-
organization;
b. To comply with and implement the
provision of the collective bargaining
contract executed on September 4,
1961, including the payment of P30.00 a
month living allowance;
c. To bargain in good faith and
expeditiously with the herein
complainants.
5. The ACCFA moved to reconsider but was turned
down in a resolution dated April 25, 1963 of the
CIR en banc. Thereupon it brought this appeal
by certiorari.

ISSUES W/ TOPIC INVOLVED:

1. WON the CIR has jurisdiction to entertain the

petition of the Unions for certification election
given that the mother company (ACA) is
engaged in governmental functions