There is nothing wrong with the Club Owner that adjusted Fran's band's pay ... the problem was, as is many times the case - COMMUNICATION. It's not a question of which sub or not. The client hired 3 people - 3 specific people. To change that lineup without notifying the client is not fair. With a simple conversation, all that pain and awkwardness would have been avoided. Stu (the guilty party) should have talked to the owner and worked out an option.
I've worked at the same place for ever and they treat me like gold - it's a never ending job to sell yourself and earn your keep. No one is "owed" a thing in this business. You work - you do good - you get paid - you get rehired. Pretty simple formula.

Just one man's take on it.