Re: Racism. Israeli “sephardim” have accused those of ashkenazic descent of racism for decades. As for Barkan and Badatz, this is a business decision that Barkan will make. on the one hand there is (apparantly) a business benefit to the eida hechsher, on the other hand there is the negative press, that can be bad for business too.
I’m willing to bet, these workers undergo a geirus at a badatz beis din within 2 weeks and all will be good again.
Nothing like “hock” to keep people busy though.