Ms Bailey will meet the Unite Union tomorrow to decide whether she will take her harassment complaint any further.
The union said it was advising her on employment issues.
It is believed that Ms Bailey asked Mr McCready to drop his private prosecution in case she wanted to take legal action herself.
Mr McCready said the waitress approached him through her union last week. "She didn't want [the case] to proceed," he said. "The union did say she might want to do it some time in the future, but she didn't want to do it now."
Mr McCready refused her request, saying, "We don't take instructions from anybody."
Mr Key told Radio New Zealand yesterday that he misread the situation and regretted the incidents, but rejected accusations of sexism and said he could have done the same thing to a man.
"There is a bit of context there. And the context was a very good-natured environment that we were in and it was very much a sort of thing in jest."