We all know (well maybe not the driver who got fired) all the ways that UPS can oberve what the driver does electronically. However the Mgmt team can't use that as sole proof to show "stealing time". Therefore the manager\on road supervisor go out to physically observe. Mgmt has to observe the entire lunch plus the extra 1/2 hour for proof that the person did steal time. Have that documented to show we have an employee is stealing time.
Per what already exists (can't use technology) and your reasoning that the mgr just sat and watched him steal time. That shouldn't be allowed, he should walk up to him and instruct him to work. If that is true, no one can ever be fired for stealing time. When no one can be fired, then many will decide to do the same.
Tell you what, why don't you just do what you said and sit on a load stand for a while when you are on the clock and see how well that logic holds up on your termination?