Those types of people are toxic to a business, fire them.
What to do with employees/staffs who are always late and absent?
Can them! Unless they have a legitimate excuse for always being late...children....then maybe you adjust their schedule a little bit, come in later and stay later....something to that effect.
Do what most corporate America does, promote them and fire the ones coming in on time and working.
One warning and then they'd be out the door especially nowadays where there are so many good, college educated with work experience people looking for work to keep their families fed and bills paid. Good help is so hard to find but its out there if someone is willing to pay for it and not minimum wages either but as a Manager I would not be putting up too much with peoples games nowadays