While he may can get away with hiring smokers only (not sure what the new fantastic EU-anti-discrimination-law has to say on it), I am sure that he will lose any possible aprés-ski at court for having fired non-smokers or not smoking. Not to be smoking is no legal reason to fire that person. and the company does not stand above the law, but has to obey it. the law says some things about where smoking is banned, and that there must be proetction of non-smokers from smokers, and so the company has to obey, period. It is not allowed to follow or ignore laws at it'S own will.
If the employees will have an easy life when returning, is somethign different. If I were them I would sue the company and try to get as much out of them as possible, and make it as painful for them as possible.
If I would have no legal protection insurrance that jumps in for the costs, than I would be screwed, of course.
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