ACCFA vs CUGCO en banc

G.R. No. L-21484 November 29, 1969

FACTS:
ACCFA was a government agency created under RA No. 821, as amended. Its administrative machinery was reorganized and its named changed to Agricultural Credit Administration under the Land Reform Code or RA 3844. ACCFA Supervisors' Association and the ACCFA Workers' Association were referred to as Union in the ACCFA.

The Unions and ACCFA entered into a collective bargaining agreement effective for a period of one year.  Few months have passed, however,The Unions, together with the CUGCO, filed a complaint against the ACCFA for having allegedly committed acts of unfair labor practices and non implementation of said agreement. Court of Industrial Relations ordered ACCFA to cease from committing further acts tending to discourage the Union members in the exercise of their right to self-organizatoin, to comply with and implement the provisions of the CBA, and to bargain with good faith with the complainants. ACCFA moved to reconsider but it was turned down in a resolution. ACCFA appealed by certiorari.

ISSUE:
Whether or not ACCFA exercised governmental functions.

RULING:
Yes. The implementation of the land reform program of the government according to Republic Act No. 3844 is most certainly a governmental, not a proprietary, function; and for that purpose Executive Order No. 75 has placed the ACA under the Land Reform Project Administration.

The law itself declares that the ACA is a government office, with the formulation of policies, plans and programs vested no longer in a Board of Governors, as in the case of the ACCFA, but in the National Land Reform Council, itself a government instrumentality; and that its personnel are subject to Civil Service laws and to rules of standardization with respect to positions and salaries, any vestige of doubt as to the governmental character of its functions disappears.