BERLIN, Dec 5 (Reuters) - Volkswagen's CFO said on

Thursday the company's labour force would need to shrink if its

factories did not become more efficient and that the group's

dividends would fall in line with earnings.

"Today, our German plants are not competitive. Without

improving their efficiency and performance, we cannot maintain

current employment levels," Arno Antlitz said at a Goldman Sachs

conference in London, according to excerpts of his speech seen

by Reuters.

"We need to fully utilise plant capacity ... In a shrinking

market, this inevitably leads to discussions about closing some

plants in Germany," he said.

Labour representatives have repeatedly called on VW

executives and shareholders, including the Porsche and Piech

families, which own a third of the VW Group, to contribute to

the reduction in costs by accepting a reduced dividend.

Speaking in London, Antlitz said the proposed dividend would

fall accordingly with earnings.

VW's earnings are down by a third in the first nine months

of its financial year, which would translate to a dividend of

6.75 euros versus 9 euros last year, based on to LSEG estimates.

Antlitz said the carmaker was committed to a payout ratio

-which represents how much of a company's earnings after tax is

paid to shareholders - of at least 30%.

"It goes without saying that, as a member of the Executive

Board, I am fully committed to contribute my part to reduce

costs," Antlitz added, without providing further details.