Sure! The work week and similar working legislation is a form of negotiating for one’s own contracts. It’s just that people got together and negotiated for their contracts in a group, and then wrote down that rule so that we don’t have to go on strike like they did.
People getting together to negotiate is not incompatible with capitalism. It is actually forming monopolies, which socialists usually try to make illegal.
So I am still not sure what that example is supposed to demonstrate?
Of course they are. Why wouldn't they be free to negotiate? Of course if you have few skills that are in demand, you are in a worse negotiating position compared to people who are in demand. You can try to acquire skills that are in demand, though.