Legal challenges from ousted officials have delayed reforms to a major union placed under administration following damaging reports of corruption and criminal influence.
Mark Irving has delivered his first report to the government since being appointed administrator of the construction division of the CFMEU in August, which was tabled in parliament on Tuesday.
But corruption and criminal infiltration of the construction industry remains "an area in which much work still needs to be done," Mr Irving said.
"Rooting out those who have engaged in and perpetuate an unacceptable culture of corruption within the union is a work in progress," he added.
The administration has commenced rebuilding the organisation as a democratic, member-controlled and effective union, conducting multiple investigations into corrupt conduct and criminal infiltration of the construction industry.
"It has done so in the shadow of an unresolved High Court challenge which has impeded the prompt implementation of the strategic plans of the administration," Mr Irving said.
The court challenge has argued placing the union in administration infringed the implied freedom of political communication.
An integrity unit has been established to handle complaints, but whistleblowers face uncertainty about the court challenge potentially returning former leaders to power, which has also deterred industry participants buying into reforms.
"There is little incentive ... to fully commit to a reform agenda when some members of the former leadership have intimated that full collaboration with the administration may result in a further cycle of retaliation," Mr Irving reported.
Elected leaders of CFMEU construction division branches in Queensland, NSW, Victoria, Tasmania, South Australia and the Northern Territory were sacked when the administrator was appointed.
Membership remains strong and the overwhelming majority of remaining staff are working to improve the union, Mr Irving reported.
Mr Irving said the union's finances remain robust and a full report will be provided as soon as it is finalised.
