These dwarfs are actually “Untersberger Mandln” (little men from a mountain next to my hometown named Untersberg).
According to legend, Emperor Charlemagne waits in the Untersberg for his resurrection. Every hundred years he wakes up and when he sees that the ravens are still flying around the mountain, he sleeps for another century. During this time the emperor is looked after by his loyal “Untersberger Mandln”.