How do you deal with a rotten apple which you can’t fire?

Hi all, I am not an owner but a manager in a small grocerie store. I am in charge of the meat, deli and cooked meal. I am 29 and I started working there about six months ago. I have three employees that have been there for 10+ years (all 50+ years old). Two of them I have no complains, they do their work and follow me with the changes I have made along the way and if there is an issue, we talk about it like adults. But the other one… Jesus Christ.
She knows how to look busy without actually being more productive than the bare minimum, is always complaining (and actively searching issues), whether it is about the job, coworkers or customers. She will try to make it obvious that she does a better job than everyone else (she is not). I understand that her attitude stems from insecurities and unhappiness but I ain't no shrink.

The real issues is : the store manager (not owner, we belong to a big chain) is empowering her. When I started I told him what I thought about her and that I wanted to replace her and he said yeah because he wanted to cut hours anyways. he never follow through and now that the mothership saw the potential in my departments (I am always more than 10% over projected net profits while the store as a whole is down) we have a bigger work load and he won't cut hours anymore and he is too clueless to find good employees and he has given her the keys to the cash and the store because she is always there (like 2-3 hours before her shift starts) and she spends all that time in the boss office talking shit and sucking ass.

This is the gist of it. I would quit right away but I need the stable income for at least three more months and also I would like to learn how to handle situation like this because I am sure she is not an isolated case. If you have any insights I am all ears. Thank you for your time.


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