The link you posted from the PA. History site is very well-written.
In talking to relatives who were involved in the sit down strike, they said the hours were very long and the work was very tough before the strike. They said the German supervisors were bigoted against the Italian-American workers. They said that the union leaders pushed the Italians to seek a closed shop in which every worker was forced to join the CIO, which the company would not approve.
Mr. Hershey had spent much of his time in Cuba in the prior years and was out of touch with the operations of the Hershey factory. He was running his large operations in Cuba (including farms, sugar plantations, a railroad, a town and a huge orphanage in Cuba).
I don't know if you can say that Mr. Hershey was personally bigoted against Italian-Americans. Italian-Americans were serving a role throughout the US as low people on the totem pole because they were the most recent immigrants and because many didn't speak fluent English. That same situation existed for many nationalities at various times in American history, such as the Irish.
Mr. Hershey was intolerant of anyone who didn't work hard, and did not hesitate to fire people if he had a good reason.
Here's a long magazine article about the history of Hershey, that includes more details about the sit down strike of 1937.
http://www.americanheritage.com/articles/magazine/ah/1973/4/1973_4_4.shtml