The decision was taken at a meeting of the Cabinet which was of the viewthat the amendment would promote internal democracy in trade unions and makethem more accountable and responsible.The amendment seeks to enhance thenumber of employees to 10 per cent of the total work force for forming aUnion and getting it registered, instead of the current requirement of sevenpersons.

This, the sources said, would help in reducing the number of unions. Theysaid the amendment would also streamline the functioning of unions by makingit mandatory to hold annual elections and auditing of annual accounts.Thesources said it was also proposed that not more than one-third of theoffice-bearers subject to a maximum of five could be outsiders.