Markinabox -

You were right (and legally obligated) to stop the operation. Your employer is liable for the safe forklift operation at their sites even if performed by contractors. If your owners believe in safety, they should fire the facilities manager who is not looking out for their best interest.

Below is a paragraph from an OSHA interpretation letter dated 04/06/1999.

Thus, if the unsafe operation of powered industrial trucks could endanger your client's employees, your client would be obligated to prevent such danger by satisfying itself that powered industrial truck operators have been properly trained. Moreover, your client also generally would be responsible for the overall safety and health conditions on the work site for the benefit of all employees. Indeed, as your client would likely concede, its warehouse is a safer place for all employees to work, if all persons are required to receive appropriate training before they are allowed to operate powered industrial trucks. This does not mean that your client is required to train powered industrial truck drivers who are not its employees. It must, however, ensure that such individuals have been trained in accordance with the provisions of the standard before they are permitted to operate powered industrial trucks at its warehouse.

Google:

04/06/1999 - Host employers must assure forklift operators... OSHA

(or)

osha.gov/pls/oshaweb/owadisp.show_document?p_table=INTERPRETATIONS&p_id=22721