Michael Warren’s Continued Call on Canada Post’s privatization

Michael Warren, a former CEO for Canada Post from 1981 to 1985 once again says yes, but with a twist.

His position was outlined in the CBC Radio program, The 180, on June 9th, 2013. The complete radio broadcast can be found at CBC’s website

The discussion goes beyond privatization and covers the present and future health of Canada Post. He provided a wealth of information.

He believes Canada Post cannot be sold because it is in a negative balance position.

“… Canada Post may be beyond privatization in the sense that its net worth is under water… its… I think would be very difficult to privatize right now.”

He also added a very important business insight at the end of the conversation:

“Once you get into a downward spiral, which I think Canada Post has been in and not seen to be in by man Canadians, cutting service, I know from experience in [jer..] business and some other fields, you gotta be careful when you cut service because you can put your business into a death spiral that you never recover from, particularly if you are not offering a leading edge service or product.”

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