Lots of opinions... I just have a couple of spins to add.
I would lean toward the "suspension" idea if it were me... in that it creates an uncomfortable consequence (smaller paycheck) while also addressing the possibility that his life outside of work might be contributing to the problem -- it sends the message that he can "get his together" and then hopefully demonstrate more integrity upon returning. Bonus incentives are great if they're offered to EVERYBODY, otherwise you're really still rewarding bad behaviour since he had to screw up enough to get you to offer it in the first place.
I wouldn't assume a drug problem. There is probably alot about this guy's life you don't know... maybe he's been having a rough go of it in his personal life and that is reflecting itself in his work ethic -- or maybe it started that way and became habit the more times he heard himself described as the "late" guy in general. Labels are habit-forming.
Do you have lesser-year apprentices? Use that to your benefit by having a talk with him about setting an example. He's your star on the scene, but he's not showing up for his own party, what gives?? It smacks of low self-respect to me.
(edited for "one of those words")
[This message has been edited by electure (edited 12-02-2006).]
