The opinion of the court was delivered by: LEFKOW
JOAM H. LEFKOW, UNITED STATES MAGISTRATE
This action for breach of an employment contract is pending for a determination of appropriate relief after the court entered summary judgment in favor of plaintiff, Ricardo Munoz, on liability issues. The liability of defendant, Expedited Freight Systems, Inc. ("EFS"), was determined in a Memorandum Opinion dated July 20, 1990 on the basis that EFS's employee handbook constituted a binding contract and that defendant breached the contract by failing to follow specific disciplinary procedures contained in the handbook. The damages issues were tried to the court in a one-day hearing. Based on the evidence received, the proposed Findings of Fact and Conclusions of Law submitted by the parties as well as arguments of counsel made in post-trial memoranda, the court enters the following Findings of Fact and Conclusions of Law:
1. Plaintiff, Ricardo Munoz, is a citizen of Illinois who resides in this judicial district.
2. Defendant, Expedited Freight Systems, Inc. ("EFS"), is a Wisconsin corporation with its principal place of business in Wisconsin.
3. Munoz was an employee of EFS. Throughout his employment, Munoz worked at an EFS facility located in Des Plaines, Illinois. That facility is now closed.
4. Prior to his employment at EFS, Munoz had worked in the transportation industry since he graduated from high school in 1972. He worked at Motor Express of Indiana for 13 years, having begun as a dock worker. There he was promoted a number of times, to an office position dealing with accounts receivable, then to office manager, then to dispatcher/evening operations, and finally to the position of central dispatcher, organization/superintendent of maintenance. In his last position with Motor Express of Indiana he was earning about $ 40,000 annually.
5. From there he was recruited by a former co-worker, Jeff Stempien, to work for EFS. The president of EFS, Thomas Kurgan, offered him the position of systems operation manager at a salary of $ 43,000 plus a $ 1,000 "signing bonus", to begin in June, 1986.
6. Munoz's duties at EFS included "oversight of systems operations" and management of EFS's terminal at Des Plaines. At the time he was hired, Munoz reported to Stempien and Kurgan.
7. Munoz received annual raises in June, 1987 and June, 1988. In June, 1988, his salary was increased to $ 47,880 annually.
8. In addition to his salary, Munoz received a monthly bonus based on EFS's profitability. The bonus arrangement began in June, 1988. Plaintiff's total bonus for the period June through December, 1988 was $ 1,969. The monthly average was $ 281.
10. He also had the use of a company car which he valued at approximately $ 200 a month.
11. In January, 1988, EFS replaced Stempien with Tony Van Der Wielen, Executive Vice-President. (Van Der Wielen left EFS in mid-1989 for reasons not of record.) Munoz then reported to Van Der Wielen and Kurgan. At this time, EFS also hired a friend of Munoz's named Richard Koenig to take over terminal manager duties that had previously been under Munoz's responsibility. Koenig reported to Munoz.
12. In April, 1988, EFS offered Munoz's job to Koenig and indicated to him that Munoz would be demoted to Koenig's job. Apparently because of his discomfort with being promoted over his friend and supervisor, Koenig soon left EFS. Munoz had contemporaneous knowledge of this offer, although he testified that Van Der Wielen told him to forget about it. He also received an annual salary increase after this occurred.
13. Koenig testified that he believed Munoz was "very in tune" with his position at EFS and that the problems at EFS were attributable to other persons, particularly Stempien.
14. In approximately September, 1988, EFS promoted James Packee to regional vice-president and located him at the Des Plaines terminal with Munoz. At that time, EFS's terminal manager was Rich Nichols. Packee has ...