Mr Kahn offended the Faculty Senate because his Flex N Gate plant in Urbana chose to resist a union organizing effort. This was entirely legal, but in some quarters is regarded as immoral and unethical.
It’s quite possible Mr Kahn’s efforts to discourage unionization saved the Urbana plant and his people’s jobs. If enough of them really wanted a union, they would certainly have one. I’m sure the Faculty Senate didn’t see it in those terms however. Small people punish successful people for political reasons.