I assume the $1.2m is the contribution made by UPSPAC. And as LPGuy says, all management (and specialists I think?) are asked for a voluntary contribution each year.
This is a critical operation for the company. Without proper representation in Washington, DC, companies like UPS would be dead in the water. And as one of the other contributors mentioned about the Teamsters-- while UPSPAC generates quite a bit of contributions from the management team each year, it's nothing compared to the PAC the Teamsters have. While one may disagree with company activities, if one is actively employed by the company, then it behooves him/her to support this activity (in my opinion).
With corporate PACs, at least the company solicits contributions from management for the purpose of political activity (this is clearly spelled out in all the forms/videos). For the Teamsters, I believe it is from union dues--hence, its membership really has no choice but to "contribute" to the PAC. There was an Executive Order (or something like an Exec Order to put into place a law that was already supposed to be in effect?) in early 2001 after President Bush came into office I think that said that union members had a right to ask that their contributions not be used for political purposes--it was promptly protested by the IBT of course.