The Health and Community Services Union (HACSU) and Victorian Allied Health Professionals Association (VAHPA) will join forces to create a stronger union which will deliver better pay and conditions for thousands of workers.
Both organisations' branch committees of management on Monday supported a memorandum of understanding to unite.
This will allow the new united union to drive a harder bargain backed by stronger finances reinforced by transparent and accountable decision making.
The branch will represent approximately 20,000 members across Allied Health, Disability, and Mental Health. This is the single largest union presence in these sectors in Victoria's history.
HACSU Victoria State Secretary Paul Healey said the move was an incredible win for all members.
"Two healthy, growing unions joining forces means members across all professions will be in a stronger position to win the pay rises and better conditions they deserve," he said.
"Allied health, mental health and disability workers will retain specialist focuses through three divisions while sharing the benefits of more collective muscle.
"This allows us to stop wasting money on duplication and invest into more member services and create stronger financial stability to take on tougher fights and win.
"All of this is underpinned by the highest standards of accountability, transparency and integrity."
HACSU primarily represents mental health and disability workers, while VAHPA is the union for allied health professionals.
HACSU is the Victoria No. 2 Branch of the Health Services Union and VAHPA is No. 3 Branch.
VAHPA Branch President JoAnne Ginn said collective strength would deliver better outcomes for workers.
"This is a historic moment for Victorian allied health workers, who will reap significant benefits from joining forces with HACSU," she said.
"VAHPA members will have access to more organisers, enhanced legal and industrial support, and greater capacity to run large-scale campaigns.
"At the moment, members in the same workplace can belong to different unions, weakening bargaining strength.
"Now with a single, united branch ensures members get all the benefits of a stronger union while maintaining a clear identity and focus through the separate divisions."
Health Services Union National President Gerard Hayes said the new branch would give workers more power.
"The days of bosses playing one union branch against another are over," he said.
"A 20,000-strong union backed by best-practice governance and transparency measures will fight hard for better outcomes on pay, safety, staffing levels and policy change.
"The savings from eliminating duplication on things like IT systems and administration will create a stronger, more sustainable financial base for campaigning and member support.
"I want to congratulate these two branches on putting members first by harnessing a fantastic opportunity to join forces."