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A) The higher the discipline the more productive are the workers (they produce more and faster) but also their happiness goes down.
B) The higher the salary the happier are your workers.
Unhappy workers will leave their job. So if you want to make your workers more productive via discipline, you should increase their salary so that they don't leave.
I don't know if these variables affect how often workers are sick.
i always have 140 percent discipline and 150 payment, they will generally be happy and dont steal