The problem is quite simple. The pilots and the company have an established agreement to have 'tracker' (ie the average of 6 similar airlines) terms of service. This includes pay, pension, allowances etc. This is a very good and very fair system for the company and for individuals.
Each year there does not need to be any negotiation - it should simply be a mathematical exercise to collate the info from the other companies to establish the tracker average to be paid.
The company has readily agreed to 2.8% tracker increase in basic pay but baulked at paying the tracker 13.5% for pensions (against last years 10% pension contribution).
It's either tracker or it's not. There isn't supposed to be a negotiated settlement - the negotiation was done a number of years ago. The result - a stand-off. Damaging for the pilots and damaging for the company.