Well, it's not as if I'm just refusing to pay or it's some minute amount of time he was late, it's something the company marketed - 40 minutes or it's free. I don't believe they dock his pay anyway, at least from reading and talking to people (intense research, obviously) so more likely he was going to pocket the $40.
As for firing him for being late repeatedly, well, we had already called the CS line when it was 15 minutes late to let them know it's late so he'll have that on his record regardless. It is a rather silly policy as it does make drivers rush and the cooks probably rush the pizza out the door.