HONG KONG (AFP) - Hong Kong's flagship carrier Cathay Pacific has been accused of scouring Malaysia for cheap labour, adding fresh turbulence to already spiky relations between unions and the airline.

The Hong Kong Airline Officers' Association (AOA) warned relations were heading for a new low after Cathay advertised in a Malaysian English-language daily for new pilots, the Sunday Morning Post said.

The airline insisted the scheme remained in the exploratory stage.

"You don't advertise in a newspaper and set up interviews if the scheme is merely intended to be exploratory," AOA general secretary John Findlay said.

"This breaks the spirit and detail of the agreement reached in 1999 over conditions of service where Cathay base their crews. Malaysia is not on that list. Hong Kong is meant to be the Asia base."

The advert in The Star newspaper offers first officer freight pilots RM163,848 in the first year. The wage is equivalent to that of a second officer in Hong Kong.

Cathay's added incentive is that Malaysian pilots can transfer to passenger flights after three years.

Market forces

But Findlay said this was unlikely as "these first officers will be junior to second officers in Hong Kong. The guys in Hong Kong will get first pick".

A Cathay spokeswoman said the recruitment drive was not about employing cheap labour and remuneration of the pilots would be determined according to market forces.

She added that Cathay was constantly looking for fresh talent and maintained scheme was in the "exploratory stage".

The dispute is the latest in a series between the union and Cathay.

In December, the airline struck a compromise deal with its pilots, agreeing to a four percent pay rise over the next year to avert the threat of flight disruptions during the Christmas holiday season.

The AOA had claimed that complicated rosters were increasing the pilot's workload and disrupting family life. They threatened to take industrial action unless the issue was resolved.

Cathay flights were disrupted over pilot pay disputes for two weeks in June 1999.