How does the Universal Union work in a governmental manner in HL2?
Universal Union also known as Combines and "Our Benefactors". Universal Union is a powerful organization who have conquered the world in 7 hours, they've renamed the cities with numbers such as City 1 - City 2 etc.
They're exploiting the Earth's resources such as oceans, mines even humans, They're transhumanizing the humans and adding them to their armies.

They're using Civil Protection Units to control the cities and Overwatch Transhuman Arms to control the outlands, any humans in outlands will be amputated on sight. Combine advisors are leading the Universal Union afaik.