Pugh worked for See's Candies, Inc. for 32 years¾he had started as a dishwasher and worked his way up to Vice President for Production and was on the Board of Directors. When he was hired, he was told by the president and general manager "if you are loyal and do a good job, your future is secure". The president had a policy of only terminating employees for good cause, and that policy was continued by his successor. During the entire period of Pugh's employment, his performance had never been formally evaluated or criticized; he was never denied a raise or bonus. After the company set sales records for the Christmas and Valentine's Day seasons, Pugh was called into the president's office and told he was fired. He was not given a reason for his discharge, but he suspects that he was fired because he objected to the "sweetheart" relationship the company had with the union representing its workers."