Most of these workers have had a real terms drop in wages for years, pay freeze for years, and at a time when the cap on bankers bonuses will be potentially lifted, you can see where the government's priorities are.
It may not have got to such an entrenched position if the government had at least shown up for negotiations. I'd wager they wouldn't actually need to play a role, employer and unions always talk to each other, but showing up would have shown at least an interest.
The government has been pushing this into a fight for months, so yes, it's political all right.
As always, the workers are fighting their own corner, good on 'em.