SINGAPORE - SBS Transit (SBST) chief executive Cheng Siak Kian told the High Court on Thursday (March 24) that the company is transparent with its bus drivers about the fact that their pay package is based on 48 hours of work per week.

"We don't hide it, they can see it for themselves," he said.

Mr Cheng, who testified remotely, was taking the stand on the third day of an ongoing hearing into a lawsuit brought by former bus driver Chua Qwong Meng, who is leading a court fight by 13 drivers against the transport operator.

The CEO denied a suggestion by lawyer Lim Tean, who acts for Mr Chua, that SBST's "built-in overtime" - which incorporates four hours of overtime a week into bus drivers' pay - was confusing and lacked clarity.

"The formulation has carried across for many years and the workers have a long tradition of working with this kind of contract. I don't think it's an issue," said Mr Cheng.

Mr Chua is seeking unspecified damages, alleging that SBST breached its contractual obligations, the Employment Act, and labour guidelines in relation to working hours, overtime pay, and rest days.

Among other things, Mr Chua contends that the company has gained four hours of "illegal" overtime through the built-in overtime component.

On Thursday, Mr Lim pointed out the built-in overtime is not stated in the employment contract, and asked how workers were expected to know about it.

Mr Cheng said the workers know that contractually, they have to work eight hours a day, six days a week.

Justice Audrey Lim asked if it was mentioned in the contract that the salary is on a 48-hour week basis, including meal and break times.

Mr Cheng said it is mentioned that overtime starts after the eighth hour.

SBST implemented built-in overtime in its rules and regulations in 2001 when the company moved from paying daily wages to monthly wages, said Mr Cheng.

Back then, bus drivers worked eight hours a day, six days a week.

Mr Cheng said the union wanted the monthly salary to be maintained on the basis of 48 hours of work, to raise the bus drivers' basic pay.

Thus, the basic monthly salary was based on 48 hours of work a week.

Pay for the four hours of work in excess of the legal limit of 44 hours a week was calculated at an overtime rate of 1.5 times, making the equivalent of six normal work hours.

Pay for four of these six hours is incorporated into the monthly basic salary, while the remaining two hours are paid to the drivers in the form of a "weekly allowance".

When Mr Lim said the rules need not be so complicated, Mr Cheng replied: "I inherited the company and these are the rules the union agreed to."

Mr Lim then said SBST was using "euphemistic" terminology.

He put it to Mr Cheng: "The company is effectively robbing your workers of four hours of overtime every week."

Mr Cheng replied: "We pay at the overtime rate. It's an agreement with the union. They wanted to have more hours in the basic package."

The trial continues on Friday (March 25).