I wouldn't say the mistake was actually corrected. The fellow is still a CWO after all. He just doesn't happen to be a CWO filling a specific billet.
Fire him, and demote whoever made the decision to put him in that job despite his rather obvious baggage. BGen Trudeau according to the article I guess?
You can't though because he was already punished for what he did. The opportunity to "fire him" was then.
One could also argue that he was punished already for this by the Court Martial and that his behaviour was deemed to have been corrected.
The entire purpose of Military Discipline is to correct behaviour to allow Members to continue to carry on serving.
It's not the members fault the CoC appointed him to that position which was totally within their control and not his.
It also must be said that legally speaking, the Chief is a lower rank (literally) than even the most Junior Officer so are we going to hold the member to a higher standard than a Junior Officer?
It's only once you start thinking about these things that you begin to realize just how much society has diverged from the Military Justice System.