Stuck at first enemy

[nomisco]

I've just turned the machine on and warmed up. Then after the dream sequence I walk back into the room with the large machine. There is an axe, bucket and fire extinguisher on the wall. The enemy drops down behind me, then swings his axe and knocks the other axe of the wall.

No matter what I try, I can't pick the axe up, he just kills me with one swing.

This has happened about 10 times now. Am I missing something obvious? This is getting really frustrating!