A lot of times immigrants to Iceland in low paying jobs like this do not understand their rights. Wouldn’t surprise me if this guy has gotten away with it before. Possibly more than once.
Iceland isn’t perfect. If a business wants to get rid of someone, they’ll find a way to do it. But it is illegal to prevent someone from joining a union, or issue threats like this. Companies over a certain size (50+ I think?) are actually required to have a union representative.
Not necessarily. While of course in many many cases, open source is a volunteer effort, there’s usually some implicit transaction going on. Whether that’s improving the software for yourself and passing that on to others, being a business and improving a library or something you use that helps your project generate revenue, or even a straight up commercial transaction.
But in all these cases, the open source project can be taken by you (or others) and you can do whatever you want with it. In the case of Winamp here, you cannot do any of that. It would be different if they were paying for contributions. But they’re not, so.