A preliminary airing of the matter before the Industrial Relations Commission at Goulburn Courthouse on Friday - heard in private conference - failed to make any progress towards a resolution.

Arbitration is now set to commence in February at the earliest, at the direction of Commissioner O'Neill, with a date to be fixed this week.

Meanwhile, the Co-operative employees at the centre of the dispute will meet today to decide if they will continue industrial action protesting former general manager Brian Davis' sacking earlier this month.

Mr Davis believes the termination of his employment results entirely from his questioning of the accuracy of the Co-op's accounts, yet a suggestion by United Services Union organiser Rudi Oppitz that he be reinstated ahead of an independent investigation of the company's finances has been described by board chairman Stan Schofield as "not a practical" resolution.

Mr Schofield has however told The News that his door remains open for talks.

Nevertheless Mr Oppitz is blaming the Co-op board for failing to prevent the matter going to arbitration at considerable cost to the business.

"We have put forward a fair and reasonable way of resolving the dispute but it has been rejected," he said on Friday.

Also to be heard in February is a constructive dismissal claim filed by former Co-op administration manager Margaret Wilken, who alleges being forced to resign after questioning bookkeeping.

Mr Davis's unfair dismissal claim is still to go before the Commission.