Private Companies To Provide Daycare

The lack of daycare availability in Reykjavík has led to two private companies establishing their own daycare centres for children of employees.

In November, 2024, Arion Bank announced the establishment of a preschool at their headquarters in Borgartún. Intended for children aged 12-24 months, 10 allotments are anticipated, Vísir reported. The preschool is expected to open in the next months.

Earlier in December, biomedical company Alvotech followed suit, committing to open three daycare centres in the capital area. The company, along with subsidiary business Flóki invest and real estate company Heimar have signed a declaration of intent to construct and manage the schools, Vísir reported.

50-100 children are estimated to attend the Alvotech schools, while their location will decided in collaboration with municipalities and parties of interest. Construction is anticipated to begin in the first quarter of 2025, with the schools will be up and running in three to five years.

According to Alvotech, shortage of daycare slots affects the company’s employees. Approximately 350 of the business’ 850 staffed members are parents. In a press statement, a company spokesperson claimed that Alvotech had conducted rigorous analysis which resulted in the best solution to support the opening of more schools.

Differing attitudes

In a conversation with RÚV, Mayor of Reykjavik Einar Þorsteinsson described it as a positive development. He is currently negotiation with Landspítalinn Hospital to begin a similar scheme. So-called “company preschools” would be managed according to the city’s education policy.

Others are not too positive about the development, with educators and specialists claiming that the private system will foster increased inequality. University of Iceland’s School of Education lecturer Ingibjörg Ósk Sigurðardóttir told RÁS 2’s morning show aired that position, adding that she feared a teachers’ flight from public schools in the light of better wages offered by private schools.

Chair of union BSRB Sonja Ýr Þorbergsdóttir said to RÚV that the development reflects the preschool system’s negative situation. The problem will not be rectified unless by increasing the numbers of preschool teachers Sonja said.