Handling company 1 for not controlling the check-in correctly and refusing the 34kg bag and failing to HEA tag the 2 bags?
Thats a no brainer.
Also ref inboard systems u/s---the airline has a responsibility to ensure that the hold is maintained to a level whereby it is safe to work there.Its a working environment. But yes, it can be difficult,and no one wants to rock the boat too much.