This is serious stuff esp. in the States, where using the "n word" is totally unacceptable. I've worked at large companies that did training seminars to make sure everyone learned to never use any words or nicknames that can hurt any other person on their team. Everyone on the job (and elsewhere IMHO) should remember that we are all created equal and deserve equal respect.
Words can be terribly painful. I can't believe a manager/meeting leader or whatever would say something such as that in a gathering you all were involved with. This is considered slander and illegal or a reason for a legal action, in many places.
It must not be tolerated. Nicknames included!
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"I need compassion, understanding and chocolate." - NJB
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