The precedent for paying 'passover' or 'by-pass' pay was set when KLM paid similar for dissuading 737 FO's from taking KLC Commands, and for bringing in the swedish wet-lease guys. Nothing new or radical there. What is in contention, I understand, is the level (i.e. the number of mainline list pilots affected) of compensation.
Similarly, the abolishing of the max L+P factor for KLC pilots has been on the table for a while. Raising or abolishing it also paves the way for career KLCuk Captains to progress beyond the current maximum increment. So, in a way, this will benefit both sets of pilots.
This is a matter that is too important, and has progressed too far to end in deadlock. A solution has to be found, and once the posturing on all sides has ended, something positive will be the end result, I feel.
Till then...........................
