I'd assume this is why they've been allowed to exist.

In fact, unfortunately, this sounds like it could be working well for Google. If this organization is calling itself a "union" without doing actual union work or representing employees, it can help create an apathetic environment towards unions at the company. It also sounds like this organization is doing product work, and with the right maneuvering this sort of momentum can be used to allow controversial changes you'd be willing to try, but would rather not take the blame for.