The situation is difficult in a small shop. However, my m.o. is that I do the best I can for all my guys, and I want them to do their best for me. If they can't be on time, they are not doing their best. It would not be acceptable to me. I've got no problem with anyone being late once in a while, but every day wouldn't cut it.
I had a friend who had a habitually late employee. He finally gave the ultimatum that everyone must be on site by 7:00. Next day guy is 15 minutes late. Sends him home. Following day he is 5 minutes late. Sends him home. Third day he is 1 minute late. Sends him home. Fourth day on - guy's on time. Problem solved.
That is the route I'd take.
