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if the free market was capable of sorting anything out, unions would never have existed

Not true at all. As a group workers have far more power than alone.

So the "free market" for workers says they should unionize as soon as they have the power to, because they can drive the price of their services up. Monopolies happen even in free markets.

Unions are inherently free market. If government controlled all labor, Unions would not exist.

That's not true. Unions are only practically possible because labor laws make it illegal to fire someone for advocating for unionizing, to fire someone for joining a union, and to fire someone for striking (kind of). The law also makes it legally mandatory to negotiate in good faith with a union. Without any of these government interventions, unions could never work.

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