Isn't there some sort of repercussions for her actions? Sounds like she will keep doing it until she gets fired. The same thing happens in our office. It's a small company, we all work for a cardiologist. There's no system of written warnings, etc. People just complain and nothing ever changes. It's very frustrating. Your GM needs to do something or she will never stop. Does your company have a seperate HR department?
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