The red, blue and green flags of labor unions fluttered in front of the towering headquarters of a major bank in Tokyo's Marunouchi business district in early September as about 200 workers shouted, "The bank ought to carry out its social responsibility" and "We don't forgive the bank for dismissing workers."

The protesters were members of the union at Ikegai Corp., a failed machine tool maker based in Kawasaki, and their supporters.

The company went bankrupt at the end of February and applied for court protection from creditors under the Civil Rehabilitation Law.

The law went into force in April 2000 to help rebuild corporations that are in dire financial straits, enabling companies to apply for court protection even before they actually fold.

Some unions contend that corporations could use the law to camouflage bankruptcy because the legislation places priority on reconstructing a company and does not provide any stipulations on protecting the rights of labor union members.

Ikegai fired all of its 550 workers in May, rehiring about 120 of them on annual contracts. The others were left unemployed with virtually no retirement pay. The bulk of them are still looking for work.

"The bank can recover all its debts by selling (Ikegai's) factory," said Kazuo Sakurai, 53, who is head of the Ikegai branch of the All-Japan Metal Information Machinery and Tools Union.

"Labor is low in order of priority and is put off until later," he said. "Why do the workers have to let their blood flow after they sweated it out for a long time in the workplace?"

Sakurai and about 30 union members have been calling on a local labor relations commission to negotiate their re-employment and retirement payments, and are asking the bank to take a number of steps to help their case, including releasing its collateral rights.

The bank abandoned Ikegai in order to recover its debts, he said, adding that if financial institutions continue to act in this fashion, small and medium-size enterprises will go under one after the other.

"There will be a growing number of people who suffer pain like us," Sakurai said.

Union member Shizuka Aida, 59, was scheduled to retire next July after working at Ikegai for 40 years.

Expressing his anger at the company's failure, he said, "I feel like everything I've done has been denied.

"My mentors honed my skills and I went through the era of high economic growth experiencing all types of technological innovations."

Aida had a sense of pride in utilizing cutting-edge technology as a machinist, but a simple sheet of paper notifying him of his dismissal stripped away those feelings.

The loss of his job has radically changed his plans for his life after retirement.

"I wanted to go around Hokkaido on a trip with my wife after my retirement," he said. "My dream is gone now."

He planned to use his retirement money to pay off the loan on the couple's home.

Aida said he received only 10 percent of the retirement pay he was supposed to get. Because the company was in trouble for some time before it declared bankruptcy, its employees endured cuts in pay and bonuses for several years.

His unemployment benefits amount to about 200,000 yen a month. His 53-year-old wife works part time, even on Saturdays and Sundays, to help pay the bills.

"She is very tired," Aida said. "We are very careful about spending but our savings will soon run out. We no longer have any dreams or hopes. Our biggest goal is to live day to day. It's no joke to say unemployment causes pain."