Another factor is the seniority system which is more or less unique to our profession. Whilst it has many advantages it effectively blocks the largescale movement of labour. If another airline is paying 20% more on salaries overall, then it would still not be worthwhile for most pilots to move because they would move from being Captain on paypoint X or FO on paypoint Y to junior teaboy on paypoint zero.
In a truly capitalist economy, supply and demand, and the movement of labour, balance terms and conditions accross the industry.
If you were the CEO of a major airline and saw anew low cost carrier coming in and trying to build up market share what would you do?
The obvious answer is to try and reduce your own wage bill in order to compete, and you have the advantage in knowing that the majority of your senior pilots will have little alternative other than to accept the changes, because they cannot afford to start again from scratch.
You may have a fight on your hands with the unions but many pilots, for whatever reason, are reluctant to join, and more importantly support a union.
Add to that Mrs Thatchers legacy whereby you can only take action over your own particular problem and not those facing the group as a whole, and it is hardly surprising that things have deteriorated.
In other countries strikes are much more wide spread. If a small group is attacked then the whole factory, or group of factories, or even industry will take collective action.