This is one of the ZFC Axioms. It says:
Union: The union, u, of a collection, z, of sets is also a set.
I interpret the statement in this way: For all z, there exists u for which for all x, there exists y such that x belongs to y AND y belongs to z, if and only if x belongs to u.
So this statement means if x is in both y and z, then it will be in u too. Since y is a set, making a union of all y's will have all the non repeating elements from those y's in u. Thus, u is a set.
I am not sure if my interpretation is correct or there is more to the statement. I don't know how to make a logical statement after reading the union axiom.
The Union axiom :
asserts that for any given set $z$ there is a set $u$ which has as members all of the members of all of the members of $z$.
This does not mean : "if $x$ is in both $y$ and $z$, then it will be in $u$ too."
The set $u$ is the set of the elements of the elements of $z$; thus : "if $x$ is in $y$ which is in $z$, then it will be in $u$."