I think there's a saying that goes: "you get what you're willing to tolerate".
This is often the reason why employees get screwed over, they're willing to tolerate far too much, for far too little reasons.
Covering up bad management and planning is not something engineers should tolerate. You should say, no sorry, you missed the deadline to fund us and have engineering start early enough, that's that, you screwed up your planning, you failed at being a good manager. We're not going to cover for your screw up.
Edit: Specifically, I don't personally hate them, but I hate that it played out this way, and I know it's a difficult position to be in and it's difficult to get out of, it just makes me mad, and I don't know what solutions there are.. maybe to fight to change the norm back to hourly employment, or have contracts with a per-week maximum hour cap that if breached warrants bonus pay on top of salaried employment.