And Again With The Homophobic Comments!!

[Apologies to those who have read an almost identical rant that I sent out by email!]

Today was a pretty average day at work. I am constantly stressed at the thought that we are not being given the tools, training or respect to be able to do our jobs to the best of our ability. I am stressed because I am certain that my holiday pay (for my upcoming 4 days off) will not be paid in full. I am stressed because I know that some of the guard force will lose there jobs because my employers are trying to fit two buildings-worth of guards into one building, and giving priority and choice (choosing day or night shifts) to the other buildings' guards only. And now I am stressed because my inept manager has made a homophobic comment in front of me and I'm not sure what to do.

I was in the control room this afternoon, when he entered with another guard after they had taken a cigarette break together. I don't know who he was talking about [though I have been told since who it could be], but my manager said to the other guard, "What do you expect? He's a fucking poofter!"
I immediately said "I'd mind my language if I were you!" to which he responded, "Why are you a poof?"
I was angry that I am having to put up with this sort of comment for the second time at this site, the first time being at the beginning of last year when I was employed by a different company on the same site.

I don't want to work with people who think this way and verbalise it, but I am wary of making "a big deal" about it for a few reasons (none of which excuse what was said, I know);

1) I know some people make these type of [homophobic, racist, sexist] comments without thinking, and sometimes just as a vent of their frustration. I have done it myself.
2) I am stressed enough because of work at the moment (see the above reasons).
3) He is a Union member and I am not, so I would not be represented by anyone and he would if it came to a disciplinary!
4) I sometimes think that it is better to educate than alienate people.

I'm really not sure what to do. If I leave matters too long it will be too late.

I am off work for 12 days now anyway, and I don't feel that I can leave it for the whole 12 days if I do want to report him.
I know he is not up to doing the job properly, as he is also not very savvy on computers at all, is dyslexic and takes credit for other people's work, (i.e. mine!), but even so I don't know if this should figure in my decision.

I am considering speaking to his manager, who seems switched on and pleasant, and mentioning that I have a situation that I may want to report but am unsure at the moment, without mentioning any names. Unfortunately, I don't know her well enough to know what she would do about it or who she would talk to.
My manager doesn't have the job permanently yet, but his interview is this week. If I say something now it could rule him out of the running completely!

I've written out an incident form already for this, just in case I do take it further, and I have told 2 colleagues about it. But I still do not know what I should do for the best for me!