I’ve had to endure many (many) mandatory sexual harassment presentations. The one thing they all make clear is that there is no “protected” class—anyone can harass anyone else: man, woman, gay, straight. Race plays no part in the equation.
Of course, that is in the US. This is Canada, so who knows?
The spin on this is that she just likes saying "penis" all the time and this attraction to the word or compulsion led her to refer to employees with the word.
That explanation is fishy, but it may not have been a gender or feminist or man-hating thing -- just a "being a jerk in general" thing.
Still, the employees should have a pretty good case against her just for throwing the word around in the office.