A sexual assault charge against the former head of Manitoba's largest union was dropped this week, just before the scheduled start of his trial.

Manitoba prosecutors stayed the charge against Abe Araya, former president of the Canadian Union of Public Employees Manitoba, a Manitoba Justice spokesperson said Tuesday.

The matter appeared in court on Monday, with the trial slated to begin this week.

"There were a host of witnesses who had come forward and made clear that the allegation itself was unfounded," Araya's lawyer, Saul Simmonds, said Tuesday.

"However, in the interest of closure and to spare anyone of the necessity of having to testify, [with] the complexities of a trial like this, just before Christmas, and bringing all of these witnesses from Winnipeg to Brandon under subpoena, we ultimately agreed to a process that gives closure to all the parties."

Araya has agreed to a one-year common-law peace bond, stipulating he not be in touch with the complainant in the case.

He was elected president of CUPE Manitoba, which represents about 37,000 members, in November 2019. Before that, he was with CUPE Local 110, which represents custodians, maintenance workers and painters in the Winnipeg School Division.

The incident was alleged to have occurred in February 2019 in Brandon. Araya was arrested Jan. 21, 2021, and CUPE's national branch asked him to step down soon after, citing the seriousness of a criminal sexual assault charge. He maintained his innocence.

When Araya refused to step down, CUPE national dissolved the entire executive slate of about 17 people and installed an administrator, who temporarily assumed control of the board.

On Tuesday, CUPE national communication director Karine Fortin said the union won't comment directly on Araya's case or the stayed charge, "except to reiterate that the safety and well-being of members and staff is CUPE's first priority."

CUPE has "undertaken to create a safer space for all workers to participate in their union. The results of the court proceedings do not change that," Fortin said in a statement Tuesday.

CUPE Manitoba voted in Gina McKay as its new president in October 2021. She and the union's new executive "are committed to fighting sexism and other forms of gender-based violence in our union and in society," Fortin's statement said.

Fortin said last year that a grievance filed internally against Araya was resolved, though she declined to provide more detail about the nature of that complaint at the time.

"This matter was investigated originally by an independent party … retained by the union. My client was exonerated through that process and we were going to go through that again in a court setting," Simmonds said.

"I'm glad for all parties that the matter has been resolved. It's taken way too long to get to this stage and closure is healthy for everyone."