Saskatchewan Crown corporation employees are threatening strike action as contract talks resume.

Workers held a brief rally at the Hotel Saskatchewan on Wednesday morning before heading into negotiations.

The government has placed a new offer on the table for employees of SaskTel, SaskPower, SaskEnergy and some smaller crowns.

"I think the frustrating part of all of this is if you look at the wage increases for the crowns since 2007, out wages have gone up 11 per cent, or less than one per cent per year," union president Jerry Dias said. "While those at the top of the food chain for the major Crown corporations wages went up 111 per cent."

The union says job action is a possibility if this week's talks do not produce an agreement.

SaskTel workers have already issued strike notice for Sept. 30, pending the outcome of the talks.