SEATTLE (AP) -- Boeing Co. has delivered its "best and final" contract offer to the Machinists union, one including an 11 percent pay raise over three years plus a 3 percent cost-of-living adjustment.

The company says the offer would also increase the basic pension to an industry-leading $80 per month for each year of service, and that it backed down on proposals the union considered deal-breakers.

Boeing withdrew a proposal to cut early retiree medical benefits for future hires.

In all the company says the offer would provide employees with $34,000 in additional pay over three years.

The union, which represents 27,000 employees in Washington, Oregon and Kansas, said it was reviewing the offer.